Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 548 Fourth Substitute (2024GS)

Sponsor

Rep. Burton, J.

Final action

House/ enrolled bill to Printing 3/14/2024

Outcome

House/ enrolled bill to Printing

Summary

What it does

• This bill:
• modifies the powers and duties of the Alcoholic Beverage Services Commission (commission) and the Department of Alcoholic Beverage Services (department);
• modifies the process for appointing the director of the department by providing the governor sole responsibility for selection and appointment;
• requires the director of the Department of Alcoholic Beverage Services to form a workgroup to make recommendations related to:
• alcohol training and education for licensees; and
• recordkeeping for certain cash transactions involving the sale of an alcoholic beverage;
• increases the state markup on spirituous liquor, wine, heavy beer, and flavored malt beverages;
• clarifies the markup on spirituous liquor, wine, heavy beer, and flavored malt beverages sold by a package agency located at a manufacturing facility;
• increases the tax on beer and uses the additional revenue to fund three new alcohol-related law enforcement officers who are dedicated to compliance;
• prohibits a state store or off-premise beer retailer from selling liquor or beer that is intended to be frozen and consumed in a manner other than as a beverage;
• requires the department to initiate disciplinary proceedings and refer the matter to the State Bureau of Investigation under certain circumstances;
• prohibits a person from selling in the state:
• liquor that contains more than 80% alcohol by volume; or
• powdered alcohol;

Every vote on this bill

Bill text

ALCOHOL AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jefferson S. Burton
Senate Sponsor: 
 Jerry W Stevenson
LONG TITLE
General Description:
This bill modifies provisions related to alcohol.
Highlighted Provisions:
This bill:
▸ modifies the powers and duties of the Alcoholic Beverage Services Commission
(commission) and the Department of Alcoholic Beverage Services (department);
▸ modifies the process for appointing the director of the department by providing the
governor sole responsibility for selection and appointment;
▸ requires the director of the Department of Alcoholic Beverage Services to form a
workgroup to make recommendations related to:
• alcohol training and education for licensees; and
• recordkeeping for certain cash transactions involving the sale of an alcoholic
beverage;
▸ increases the state markup on spirituous liquor, wine, heavy beer, and flavored malt
beverages;
▸ clarifies the markup on spirituous liquor, wine, heavy beer, and flavored malt
beverages sold by a package agency located at a manufacturing facility;
▸ increases the tax on beer and uses the additional revenue to fund three new
alcohol-related law enforcement officers who are dedicated to compliance;
▸ prohibits a state store or off-premise beer retailer from selling liquor or beer that is
intended to be frozen and consumed in a manner other than as a beverage;
▸ requires the department to initiate disciplinary proceedings and refer the matter to
the State Bureau of Investigation under certain circumstances;
▸ prohibits a person from selling in the state:
• liquor that contains more than 80% alcohol by volume; or
• powdered alcohol;
▸ requires the commission to issue any available retail license, including through a
conditional retail license, if an applicant satisfies the requirements for the retail
license;
▸ allows a retail licensee to sell, offer for sale, or furnish spirituous liquor in a
pre-mixed beverage, if the beverage is in the original, sealed container and satisfies
other requirements, including requirements related to volume, alcohol content, and
labeling;
▸ increases the number of full-service restaurant and bar establishment licenses the
commission is authorized to issue;
▸ requires the department to prorate the initial licensing fee for retail licenses;
▸ allows an on-premise beer retailer or an equity licensee to dispense from a
motorized or non-motorized vehicle while on a golf course;
▸ decreases the required capacity of a sports facility or concert venue to qualify as a
recreational amenity for purposes of an on-premise beer retailer license;
▸ provides that a patron in a hotel with a hotel license may carry an alcoholic
beverage between specified locations within the hotel, provided the patron travels
within a designated conveyance area and the alcoholic beverage is in an approved
container;
▸ allows an entity that is not an airline to obtain a public service permit for the
purpose of operating a hospitality room at an international airport;
▸ allows an individual to obtain a DUI investigative report if the individual suffered
loss or injury as a result of the defendant's actions;
▸ establishes a place of last drink program, operated by the Department of Public
Safety;
▸ repeals the Alcoholic Beverage Services Advisory Board; 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 2023, Chapters 328, 371 and 400
32B-1-304
, as last amended by Laws of Utah 2023, Chapter 371
32B-2-201
, as last amended by Laws of Utah 2022, Chapter 447
32B-2-202
, as last amended by Laws of Utah 2023, Chapter 371
32B-2-203
, as last amended by Laws of Utah 2022, Chapter 447
32B-2-205
, as last amended by Laws of Utah 2022, Chapter 447
32B-2-206
, as last amended by Laws of Utah 2021, Chapter 345
32B-2-304
, as last amended by Laws of Utah 2022, Chapter 447
32B-2-305
, as last amended by Laws of Utah 2023, Chapter 396
32B-2-503
, as last amended by Laws of Utah 2011, Chapters 307, 334
32B-3-203
, as last amended by Laws of Utah 2012, Chapter 369
32B-4-401
, as last amended by Laws of Utah 2016, Chapter 266
32B-4-422
, as last amended by Laws of Utah 2020, Chapter 219
32B-4-424
, as enacted by Laws of Utah 2015, Chapter 54
32B-4-501
, as last amended by Laws of Utah 2017, Chapter 455
32B-5-201
, as last amended by Laws of Utah 2022, Chapter 447
32B-5-304
, as last amended by Laws of Utah 2023, Chapter 371
32B-6-203
, as last amended by Laws of Utah 2023, Chapter 371
32B-6-204
, as last amended by Laws of Utah 2017, Chapter 455
32B-6-206
, as last amended by Laws of Utah 2023, Chapter 371
32B-6-302
, as last amended by Laws of Utah 2018, Chapters 249, 313
32B-6-304
, as last amended by Laws of Utah 2016, Chapter 82
32B-6-306
, as enacted by Laws of Utah 2013, Chapter 349
32B-6-403
, as last amended by Laws of Utah 2023, Chapter 371
32B-6-405
, as last amended by Laws of Utah 2017, Chapter 455
32B-6-407
, as last amended by Laws of Utah 2017, Chapter 455
32B-6-504
, as last amended by Laws of Utah 2011, Chapter 334
32B-6-604
, as last amended by Laws of Utah 2011, Chapter 334
32B-6-605
, as last amended by Laws of Utah 2023, Chapters 371, 400
32B-6-702
, as last amended by Laws of Utah 2021, Chapter 280
32B-6-705
, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
32B-6-706
, as last amended by Laws of Utah 2023, Chapter 400
32B-6-804
, as enacted by Laws of Utah 2011, Chapter 334
32B-6-902
, as last amended by Laws of Utah 2019, Chapter 403
32B-6-904
, as last amended by Laws of Utah 2012, Fourth Special Session, Chapter 1
32B-6-1004
, as last amended by Laws of Utah 2021, Chapter 291
32B-7-202
, as last amended by Laws of Utah 2022, Chapter 447
32B-8b-102
, as last amended by Laws of Utah 2023, Chapter 371
32B-8b-201
, as last amended by Laws of Utah 2020, Chapter 219
32B-8b-202
, as last amended by Laws of Utah 2020, Chapter 219
32B-8b-301
, as last amended by Laws of Utah 2023, Chapter 371
32B-8d-104
, as last amended by Laws of Utah 2022, Chapter 447
32B-10-202
, as enacted by Laws of Utah 2010, Chapter 276
32B-10-303
, as last amended by Laws of Utah 2020, Sixth Special Session, Chapter 6
32B-10-304
, as last amended by Laws of Utah 2020, Sixth Special Session, Chapter 6
32B-15-201
, as last amended by Laws of Utah 2023, Chapter 400
59-15-101
, as last amended by Laws of Utah 2019, Chapter 336
59-15-109
, as last amended by Laws of Utah 2023, Chapter 396
63I-2-232
, as last amended by Laws of Utah 2023, Chapter 371
ENACTS:
41-6a-531
, Utah Code Annotated 1953
53-28-101
, Utah Code Annotated 1953
53-28-102
, Utah Code Annotated 1953
REPEALS:
32B-2-201.5
, as enacted by Laws of Utah 2012, Chapter 365
32B-2-210
, as last amended by Laws of Utah 2022, Chapter 447
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 or domestic airport.
(2) "Airport lounge license" means a license issued in accordance with Chapter 5,
Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
(3) "Alcoholic beverage" means the following:
(a) beer; or
(b) liquor.
(4) (a) "Alcoholic product" means a product that:
(i) contains at least .5% of alcohol by volume; and
(ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
in an amount equal to or greater than .5% of alcohol by volume.
(b) "Alcoholic product" includes an alcoholic beverage.
(c) "Alcoholic product" does not include any of the following common items that
otherwise come within the definition of an alcoholic product:
(i) except as provided in Subsection (4)(d), an extract;
(ii) vinegar;
(iii) preserved nonintoxicating cider;
(iv) essence;
(v) tincture;
(vi) food preparation; or
(vii) an over-the-counter medicine.
(d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
when it is used as a flavoring in the manufacturing of an alcoholic product.
(5) "Alcohol training and education seminar" means a seminar that is:
(a) required by Chapter 1, Part 7, Alcohol Training and Education Act; and
(b) described in Section 
26B-5-205
.
(6) "Arena" means an enclosed building:
(a) that is managed by:
(i) the same person who owns the enclosed building;
(ii) a person who has a majority interest in each person who owns or manages a space
in the enclosed building; or
(iii) a person who has authority to direct or exercise control over the management or
policy of each person who owns or manages a space in the enclosed building;
(b) that operates as a venue; and
(c) that has an occupancy capacity of at least 12,500.
(7) "Arena license" means a license issued in accordance with Chapter 5, Retail
License Act, and Chapter 8c, Arena License Act.
(8) "Banquet" means an event:
(a) that is a private event or a privately sponsored event;
(b) that is held at one or more designated locations approved by the commission in or
on the premises of:
(i) a hotel;
(ii) a resort facility;
(iii) a sports center;
(iv) a convention center;
(v) a performing arts facility;
(vi) an arena; or
(vii) a restaurant venue;
(c) for which there is a contract:
(i) between a person operating a facility listed in Subsection (8)(b) and another person
that has common ownership of less than 20% with the person operating the facility; and
(ii) under which the person operating a facility listed in Subsection (8)(b) is required to
provide an alcoholic product at the event; and
(d) at which food and alcoholic products may be sold, offered for sale, or furnished.
(9) (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.
(10) "Bar license" means a license issued in accordance with Chapter 5, Retail License
Act, and Chapter 6, Part 4, Bar Establishment License.
(11) (a) "Beer" means a product that:
(i) contains:
(A) at least .5% of alcohol by volume; and
(B) no more than 5% of alcohol by volume or 4% by weight;
(ii) is obtained by fermentation, infusion, or decoction of:
(A) malt; or
(B) a malt substitute; and
(iii) is clearly marketed, labeled, and identified as:
(A) beer;
(B) ale;
(C) porter;
(D) stout;
(E) lager;
(F) a malt;
(G) a malted beverage; or
(H) seltzer.
(b) "Beer" may contain:
(i) hops extract;
(ii) caffeine, if the caffeine is a natural constituent of an added ingredient; or
(iii) a propylene glycol-, ethyl alcohol-, or ethanol-based flavoring agent that:
(A) is used in the production of beer;
(B) is in a formula approved by the federal Alcohol and Tobacco Tax and Trade
Bureau after the formula is filed for approval under 27 C.F.R. Sec. 25.55; and
(C) does not contribute more than 10% of the overall alcohol content of the beer.
(c) "Beer" does not include:
(i) a flavored malt beverage;
(ii) a product that contains alcohol derived from:
(A) except as provided in Subsection (11)(b)(iii), spirituous liquor; or
(B) wine; or
(iii) a product that contains an additive masking or altering a physiological effect of
alcohol, including kratom, kava, cannabidiol, or natural or synthetic tetrahydrocannabinol.
(12) "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.
(13) "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.
(14) "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.
(15) "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.
(16) "Brewer" means a person engaged in manufacturing:
(a) beer;
(b) heavy beer; or
(c) a flavored malt beverage.
(17) "Brewery manufacturing license" means a license issued in accordance with
Chapter 11, Part 5, Brewery Manufacturing License.
(18) "Certificate of approval" means a certificate of approval obtained from the
department under Section 
32B-11-201
.
(19) "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.
(20) "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.
(21) "Commission" means the Alcoholic Beverage Services Commission created in
Section 
32B-2-201
.
(22) "Commissioner" means a member of the commission.
(23) "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.
(24) "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.
(25) "Container" means a receptacle that contains an alcoholic product, including:
(a) a bottle;
(b) a vessel; or
(c) a similar item.
(26) "Controlled group of manufacturers" means as the commission defines by rule
made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(27) "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.
(28) (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.
(29) "Crime involving moral turpitude" is as defined by the commission by rule.
(30) "Department" means the Department of Alcoholic Beverage Services created in
Section 
32B-2-203
.
(31) "Department compliance officer" means an individual who is:
(a) an auditor or inspector; and
(b) employed by the department.
(32) "Department sample" means liquor that is placed in the possession of the
department for testing, analysis, and sampling.
(33) "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.
(34) "Director," unless the context requires otherwise, means the director of the
department.
(35) "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.
(36) (a) Subject to Subsection (36)(b), "dispense" means:
(i) drawing an alcoholic product; and
(ii) using the alcoholic product at the location from which it was drawn to mix or
prepare an alcoholic product to be furnished to a patron of the retail licensee.
(b) The definition of "dispense" in this Subsection (36) applies only to:
(i) a full-service restaurant license;
(ii) a limited-service restaurant license;
(iii) a reception center license;
(iv) a beer-only restaurant license;
(v) a bar license;
(vi) an on-premise beer retailer;
(vii) an airport lounge license;
(viii) an on-premise banquet license; and
(ix) a hospitality amenity license.
(37) "Dispensing structure" means a surface or structure on a licensed premises:
(a) where an alcoholic product is dispensed; or
(b) from which an alcoholic product is served.
(38) "Distillery manufacturing license" means a license issued in accordance with
Chapter 11, Part 4, Distillery Manufacturing License.
(39) "Distressed merchandise" means an alcoholic product in the possession of the
department that is saleable, but for some reason is unappealing to the public.
(40) "Domestic airport" means an airport that:
(a) has at least 15,000 commercial airline passenger boardings in any five-year period;
(b) receives scheduled commercial passenger aircraft service; and
(c) is not an international airport.
(41) "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.
(42) "Event permit" means:
(a) a single event permit; or
(b) a temporary beer event permit.
(43) "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.
(44) (a) "Flavored malt beverage" means a beverage:
(i) that contains at least .5% alcohol by volume;
(ii) for which the producer is required to file a formula for approval with the federal
Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because the beverage
is treated by processing, filtration, or another method of manufacture that is not generally
recognized as a traditional process in the production of a beer, ale, porter, stout, lager, or malt
liquor; and
(iii) for which the producer is required to file a formula for approval with the federal
Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because the beverage
includes an ingredient containing alcohol.
(b) "Flavored malt beverage" may contain a propylene glycol-, ethyl alcohol-, or
ethanol-based flavoring agent that contributes to the overall alcohol content of the beverage.
(c) "Flavored malt beverage" does not include beer or heavy beer.
(d) "Flavored malt beverage" is considered liquor for purposes of this title.
(45) "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.
(46) "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.
(47) (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.
(48) "Guest" means an individual who meets the requirements of Subsection
32B-6-407
(9).
(49) "Hard cider" means the same as that term is defined in 26 U.S.C. Sec. 5041.
(50) "Health care practitioner" means:
(a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
(b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
(c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
(d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
Act;
(e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
Nurse Practice Act;
(f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
Practice Act;
(g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
Therapy Practice Act;
(h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
(i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
Professional Practice Act;
(j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
(k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
Practice Act;
(l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
Hygienist Practice Act; and
(m) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
Assistant Act.
(51) (a) "Heavy beer" means a product that:
(i) (A) contains more than 5% alcohol by volume;
(B) contains at least .5% of alcohol by volume and no more than 5% of alcohol by
volume or 4% by weight, and a propolyne glycol-, ethyl alcohol-, or ethanol-based flavoring
agent that contributes more than 10% of the overall alcohol content of the product; or
(C) contains at least .5% of alcohol by volume and no more than 5% of alcohol by
volume or 4% by weight, and has a label or packaging that is rejected under Subsection
32B-1-606
(3)(b); and
(ii) is obtained by fermentation, infusion, or decoction of:
(A) malt; or
(B) a malt substitute.
(b) "Heavy beer" may, if the heavy beer contains more than 5% alcohol by volume,
contain a propolyne glycol-, ethyl alcohol-, or ethanol-based flavoring agent that contributes to
the overall alcohol content of the heavy beer.
(c) "Heavy beer" does not include:
(i) a flavored malt beverage;
(ii) a product that contains alcohol derived from:
(A) except as provided in Subsections (51)(a)(i)(B) and (51)(b), spirituous liquor; or
(B) wine; or
(iii) a product that contains an additive masking or altering a physiological effect of
alcohol, including kratom, kava, cannabidiol, or natural or synthetic tetrahydrocannabinol.
(d) "Heavy beer" is considered liquor for the purposes of this title.
(52) "Hospitality amenity license" means a license issued in accordance with Chapter
5, Retail License Act, and Chapter 6, Part 10, Hospitality Amenity License.
(53) (a) "Hotel" means a commercial lodging establishment that:
(i) offers at least 40 rooms as temporary sleeping accommodations for compensation;
(ii) is capable of hosting conventions, conferences, and food and beverage functions
under a banquet contract; and
(iii) (A) has adequate kitchen or culinary facilities on the premises to provide complete
meals;
(B) has at least 1,000 square feet of function space consisting of meeting or dining
rooms that can be reserved for a banquet and can accommodate at least 75 individuals; or
(C) if the establishment is located in a small or unincorporated locality, has an
appropriate amount of function space consisting of meeting or dining rooms that can be
reserved for private use under a banquet contract, as determined by the commission.
(b) "Hotel" includes a commercial lodging establishment that:
(i) meets the requirements under Subsection (53)(a); and
(ii) has one or more privately owned dwelling units.
(54) "Hotel license" means a license issued in accordance with Chapter 5, Retail
License Act, and Chapter 8b, Hotel License Act.
(55) "Identification card" means an identification card issued under Title 53, Chapter 3,
Part 8, Identification Card Act.
(56) "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.
(57) "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.
(58) "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.
(59) "International airport" means an airport:
(a) with a United States Customs and Border Protection office on the premises of the
airport; and
(b) at which international flights may enter and depart.
(60) "Intoxicated" or "intoxication" means that
an individual exhibits plain and easily observable outward manifestations of behavior
or physical signs produced by or as a result of the use of:
(a) an alcoholic product;
(b) a controlled substance;
(c) a substance having the property of releasing toxic vapors; or
(d) a combination of products or substances described in Subsections (60)(a) through
(c).
(61) "Investigator" means an individual who is:
(a) a department compliance officer; or
(b) a nondepartment enforcement officer.
(62) "License" means:
(a) a retail license;
(b) a sublicense;
(c) a license issued in accordance with Chapter 7, Part 4, Off-premise Beer Retailer
State License;
(d) a license issued in accordance with Chapter 11, Manufacturing and Related
Licenses Act;
(e) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
(f) a license issued in accordance with Chapter 13, Beer Wholesaling License Act; or
(g) a license issued in accordance with Chapter 17, Liquor Transport License Act.
(63) "Licensee" means a person who holds a license.
(64) "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.
(65) "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.
(66) (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.
(67) "Liquor Control Fund" means the enterprise fund created by Section 
32B-2-301
.
(68) "Liquor transport license" means a license issued in accordance with Chapter 17,
Liquor Transport License Act.
(69) "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.
(70) "Local authority" means:
(a) for premises that are located in an unincorporated area of a county, the governing
body of a county;
(b) for premises that are located in an incorporated city, town, or metro township, the
governing body of the city, town, or metro township; or
(c) for premises that are located in a project area as defined in Section 
63H-1-102
 and
in a project area plan adopted by the Military Installation Development Authority under Title
63H, Chapter 1, Military Installation Development Authority Act, the Military Installation
Development Authority.
(71) "Lounge or bar area" is as defined by rule made by the commission.
(72) "Malt substitute" means:
(a) rice;
(b) grain;
(c) bran;
(d) glucose;
(e) sugar; or
(f) molasses.
(73) "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.
(74) "Member" means an individual who, after paying regular dues, has full privileges
in an equity licensee or fraternal licensee.
(75) (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.
(76) "Minibar" means an area of a hotel guest room where one or more alcoholic
products are kept and offered for self-service sale or consumption.
(77) "Minor" means an individual under 21 years old.
(78) "Mobile dispensing unit" means a motorized or non-motorized vehicle:
(a) where an alcoholic product is dispensed; or
(b) from which an alcoholic product is served.
[
(78)
] 
(79)
 "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.
[
(79)
] 
(80)
 "Nondepartment enforcement officer" means an individual who is:
(a) a peace officer, examiner, or investigator; and
(b) employed by a nondepartment enforcement agency.
[
(80)
] 
(81)
 (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.
[
(81)
] 
(82)
 "Off-premise beer retailer state license" means a state license issued in
accordance with Chapter 7, Part 4, Off-premise Beer Retailer State License.
[
(82)
] 
(83)
 "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.
[
(83)
] 
(84)
 "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).
[
(84)
] 
(85)
 "Opaque" means impenetrable to sight.
[
(85)
] 
(86)
 "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.
[
(86)
] 
(87)
 "Package agent" means a person who holds a package agency.
[
(87)
] 
(88)
 "Patron" means an individual to whom food, beverages, or services are sold,
offered for sale, or furnished, or who consumes an alcoholic product including:
(a) a customer;
(b) a member;
(c) a guest;
(d) an attendee of a banquet or event;
(e) an individual who receives room service;
(f) a resident of a resort; or
(g) a hospitality guest, as defined in Section 
32B-6-1002
, under a hospitality amenity
license.
[
(88)
] 
(89)
 (a) "Performing arts facility" means a multi-use performance space that:
(i) is primarily used to present various types of performing arts, including dance,
music, and theater;
(ii) contains over 2,500 seats;
(iii) is owned and operated by a governmental entity; and
(iv) is located in a city of the first class.
(b) "Performing arts facility" does not include a space that is used to present sporting
events or sporting competitions.
[
(89)
] 
(90)
 "Permittee" means a person issued a permit under:
(a) Chapter 9, Event Permit Act; or
(b) Chapter 10, Special Use Permit Act.
[
(90)
] 
(91)
 "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 [
(90)(a)
] 
(91)(a)
 through (f); or
(ii) a package agent.
[
(91)
] 
(92)
 "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.
[
(92)
] 
(93)
 "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.
[
(93)
] 
(94)
 (a) "Primary spirituous liquor" means the main distilled spirit in a beverage.
(b) "Primary spirituous liquor" does not include a secondary flavoring ingredient.
[
(94)
] 
(95)
 "Principal license" means:
(a) a resort license;
(b) a hotel license; or
(c) an arena license.
[
(95)
] 
(96)
 (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.
[
(96)
] 
(97)
 "Privately sponsored event" means a specific social, business, or
recreational event:
(a) that is held in or on the premises of an on-premise banquet licensee; and
(b) to which entry is restricted by an admission fee.
[
(97)
] 
(98)
 (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;
(II) in accordance with the laws of the state in which it is issued; or
(III) in accordance with federal law by the United States Department of State;
(iv) a military identification card that:
(A) includes date of birth; and
(B) has a picture affixed; or
(v) a valid passport.
(b) "Proof of age" does not include a driving privilege card issued in accordance with
Section 
53-3-207
.
[
(98)
] 
(99)
 "Provisions applicable to a sublicense" means:
(a) for a full-service restaurant sublicense, the provisions applicable to a full-service
restaurant license under Chapter 6, Part 2, Full-Service Restaurant License;
(b) for a limited-service restaurant sublicense, the provisions applicable to a
limited-service restaurant license under Chapter 6, Part 3, Limited-Service Restaurant License;
(c) for a bar establishment sublicense, the provisions applicable to a bar establishment
license under Chapter 6, Part 4, Bar Establishment License;
(d) for an on-premise banquet sublicense, the provisions applicable to an on-premise
banquet license under Chapter 6, Part 6, On-Premise Banquet License;
(e) for an on-premise beer retailer sublicense, the provisions applicable to an
on-premise beer retailer license under Chapter 6, Part 7, On-Premise Beer Retailer License;
(f) for a beer-only restaurant sublicense, the provisions applicable to a beer-only
restaurant license under Chapter 6, Part 9, Beer-Only Restaurant License;
(g) for a hospitality amenity license, the provisions applicable to a hospitality amenity
license under Chapter 6, Part 10, Hospitality Amenity License; and
(h) for a spa sublicense, the provisions applicable to the sublicense under Chapter 8d,
Part 2, Resort Spa Sublicense.
[
(99)
] 
(100)
 (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.
[
(100)
] 
(101)
 "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.
[
(101)
] 
(102)
 "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
[
(101)(a)
] 
(102)(a)
 to a third party for the third party's event.
[
(102)
] 
(103)
 "Reception center license" means a license issued in accordance with
Chapter 5, Retail License Act, and Chapter 6, Part 8, Reception Center License.
[
(103)
] 
(104)
 (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.
[
(104)
] 
(105)
 "Residence" means a person's principal place of abode within Utah.
[
(105)
] 
(106)
 "Resident," in relation to a resort, means the same as that term is defined
in Section 
32B-8-102
.
[
(106)
] 
(107)
 "Resort" means the same as that term is defined in Section 
32B-8-102
.
[
(107)
] 
(108)
 "Resort facility" is as defined by the commission by rule.
[
(108)
] 
(109)
 "Resort license" means a license issued in accordance with Chapter 5,
Retail License Act, and Chapter 8, Resort License Act.
[
(109)
] 
(110)
 "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.
[
(110)
] 
(111)
 "Restaurant" means a business location:
(a) at which a variety of foods are prepared;
(b) at which complete meals are served; and
(c) that is engaged primarily in serving meals.
[
(111)
] 
(112)
 "Restaurant license" means one of the following licenses issued under
this title:
(a) a full-service restaurant license;
(b) a limited-service restaurant license; or
(c) a beer-only restaurant license.
[
(112)
] 
(113)
 "Restaurant venue" means a room within a restaurant that:
(a) is located on the licensed premises of a restaurant licensee;
(b) is separated from the area within the restaurant for a patron's consumption of food
by a permanent, opaque, floor-to-ceiling wall such that the inside of the room is not visible to a
patron in the area within the restaurant for a patron's consumption of food; and
(c) (i) has at least 1,000 square feet that:
(A) may be reserved for a banquet; and
(B) accommodates at least 75 individuals; or
(ii) if the restaurant is located in a small or unincorporated locality, has an appropriate
amount of space, as determined by the commission, that may be reserved for a banquet.
[
(113)
] 
(114)
 "Retail license" means one of the following licenses issued under this
title:
(a) a full-service restaurant license;
(b) a master full-service restaurant license;
(c) a limited-service restaurant license;
(d) a master limited-service restaurant license;
(e) a bar establishment license;
(f) an airport lounge license;
(g) an on-premise banquet license;
(h) an on-premise beer license;
(i) a reception center license;
(j) a beer-only restaurant license;
(k) a hospitality amenity license;
(l) a resort license;
(m) a hotel license; or
(n) an arena license.
[
(114)
] 
(115)
 "Room service" means furnishing an alcoholic product to a person in a
guest room or privately owned dwelling unit of a:
(a) hotel; or
(b) resort facility.
[
(115)
] 
(116)
 (a) "School" means a building in which any part is used for more than
three hours each weekday during a school year as a public or private:
(i) elementary school;
(ii) secondary school; or
(iii) kindergarten.
(b) "School" does not include:
(i) a nursery school;
(ii) a day care center;
(iii) a trade and technical school;
(iv) a preschool; or
(v) a home school.
[
(116)
] 
(117)
 "Secondary flavoring ingredient" means any spirituous liquor added to a
beverage for additional flavoring that is different in type, flavor, or brand from the primary
spirituous liquor in the beverage.
[
(117)
] 
(118)
 "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.
[
(118)
] 
(119)
 "Serve" means to place an alcoholic product before an individual.
[
(119)
] 
(120)
 "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 [
(119)(b)
]
(120)(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.
[
(120)
] 
(121)
 "Shared seating area" means the licensed premises of two or more
restaurant licensees that the restaurant licensees share as an area for alcoholic beverage
consumption in accordance with Subsection 
32B-5-207
(3).
[
(121)
] 
(122)
 "Single event permit" means a permit issued in accordance with Chapter
9, Part 3, Single Event Permit.
[
(122)
] 
(123)
 "Small brewer" means a brewer who manufactures less than 60,000
barrels of beer, heavy beer, and flavored malt beverage per year, as the department calculates
by:
(a) if the brewer is part of a controlled group of manufacturers, including the combined
volume totals of production for all breweries that constitute the controlled group of
manufacturers; and
(b) excluding beer, heavy beer, or flavored malt beverage the brewer:
(i) manufactures that is unfit for consumption as, or in, a beverage, as the commission
determines by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act; and
(ii) does not sell for consumption as, or in, a beverage.
[
(123)
] 
(124)
 "Small or unincorporated locality" means:
(a) a city of the third, fourth, or fifth class, as classified under Section 
10-2-301
;
(b) a town, as classified under Section 
10-2-301
; or
(c) an unincorporated area in a county of the third, fourth, or fifth class, as classified
under Section 
17-50-501
.
[
(124)
] 
(125)
 "Spa sublicense" means a sublicense:
(a) to a resort license or hotel license; and
(b) that the commission issues in accordance with Chapter 8d, Part 2, Resort Spa
Sublicense.
[
(125)
] 
(126)
 "Special use permit" means a permit issued in accordance with Chapter
10, Special Use Permit Act.
[
(126)
] 
(127)
 (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.
[
(127)
] 
(128)
 "Sports center" is as defined by the commission by rule.
[
(128)
] 
(129)
 (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.
[
(129)
] 
(130)
 "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.
[
(130)
] 
(131)
 "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.
[
(131)
] 
(132)
 (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.
[
(132)
] 
(133)
 (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.
[
(133)
] 
(134)
 "Sublicense" means:
(a) any of the following licenses issued as a subordinate license to, and contingent on
the issuance of, a principal license:
(i) a full-service restaurant license;
(ii) a limited-service restaurant license;
(iii) a bar establishment license;
(iv) an on-premise banquet license;
(v) an on-premise beer retailer license;
(vi) a beer-only restaurant license; or
(vii) a hospitality amenity license; or
(b) a spa sublicense.
[
(134)
] 
(135)
 "Supplier" means a person who sells an alcoholic product to the
department.
[
(135)
] 
(136)
 "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.
[
(136)
] 
(137)
 "Temporary beer event permit" means a permit issued in accordance with
Chapter 9, Part 4, Temporary Beer Event Permit.
[
(137)
] 
(138)
 "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.
[
(138)
] 
(139)
 "Translucent" means a substance that allows light to pass through, but
does not allow an object or person to be seen through the substance.
[
(139)
] 
(140)
 "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.
[
(140)
] 
(141)
 (a) "Wine" means an alcoholic product obtained by the fermentation of
the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
not another ingredient is added.
(b) "Wine" includes:
(i) an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211 and 27 C.F.R. Sec.
4.10; and
(ii) hard cider.
(c) "Wine" is considered liquor for purposes of this title, except as otherwise provided
in this title.
[
(141)
] 
(142)
 "Winery manufacturing license" means a license issued in accordance
with Chapter 11, Part 3, Winery Manufacturing License.
Section 2. Section 
32B-1-304
 is amended to read:
32B-1-304.
Qualifications for a package agency, license, or permit -- Minors.
(1) (a) Except as provided in Subsection (7), the commission may not issue a package
agency, license, or permit to a person who has been convicted of:
(i) within seven years before the day on which the commission issues the package
agency, license, or permit, a felony under a federal law or state law;
(ii) within four years before the day on which the commission issues the package
agency, license, or permit:
(A) a violation of a federal law, state law, or local ordinance concerning the sale, offer
for sale, warehousing, manufacture, distribution, transportation, or adulteration of an alcoholic
product; or
(B) a crime involving moral turpitude; or
(iii) on two or more occasions within the five years before the day on which the
package agency, license, or permit is issued, driving under the influence of alcohol, drugs, or
the combined influence of alcohol and drugs.
(b) If the person is a partnership, corporation, or limited liability company, the
proscription under Subsection (1)(a) applies if any of the following has been convicted of an
offense described in Subsection (1)(a):
(i) a partner;
(ii) a managing agent;
(iii) a manager;
(iv) an officer;
(v) a director;
(vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
the corporation; or
(vii) a member who owns at least 20% of the limited liability company.
(c) Except as provided in Subsection (7), the proscription under Subsection (1)(a)
applies if a person who is employed to act in a supervisory or managerial capacity for a
package agency, licensee, or permittee has been convicted of an offense described in
Subsection (1)(a).
(2) Except as described in Section 
32B-8-501
, the commission may immediately
suspend or revoke a package agency, license, or permit, and terminate a package agency
agreement, if a person described in Subsection (1):
(a) after the day on which the package agency, license, or permit is issued, is found to
have been convicted of an offense described in Subsection (1)(a) before the package agency,
license, or permit is issued; or
(b) on or after the day on which the package agency, license, or permit is issued:
(i) is convicted of an offense described in Subsection (1)(a)(i) or (ii); or
(ii) (A) is convicted of driving under the influence of alcohol, drugs, or the combined
influence of alcohol and drugs; and
(B) was convicted of driving under the influence of alcohol, drugs, or the combined
influence of alcohol and drugs within five years before the day on which the person is
convicted of the offense described in Subsection (2)(b)(ii)(A).
(3) Except as described in Section 
32B-8-501
, the director may take emergency action
by immediately suspending the operation of the package agency, licensee, or permittee for the
period during which a criminal matter is being adjudicated if a person described in Subsection
(1):
(a) is arrested on a charge for an offense described in Subsection (1)(a)(i) or (ii); or
(b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
drugs, or the combined influence of alcohol and drugs; and
(ii) was convicted of driving under the influence of alcohol, drugs, or the combined
influence of alcohol and drugs within five years before the day on which the person is arrested
on a charge described in Subsection (3)(b)(i).
(4) (a) (i) The commission may not issue a package agency, license, or permit to a
person who has had any type of agency, license, or permit issued under this title revoked within
the last three years.
(ii) The commission may not issue a package agency, license, or permit to a
partnership, corporation, or limited liability company if a partner, managing agent, manager,
officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
of the corporation, or member who owns at least 20% of the limited liability company is or
was:
(A) a partner or managing agent of a partnership that had any type of agency, license,
or permit issued under this title revoked within the last three years;
(B) a managing agent, officer, director, or stockholder who holds or held at least 20%
of the total issued and outstanding stock of any corporation that had any type of agency,
license, or permit issued under this title revoked within the last three years; or
(C) a manager or member who owns or owned at least 20% of a limited liability
company that had any type of agency, license, or permit issued under this title revoked within
the last three years.
(b) The commission may not issue a package agency, license, or permit to a
partnership, corporation, or limited liability company if any of the following had any type of
agency, license, or permit issued under this title revoked while acting in that person's individual
capacity within the last three years:
(i) a partner or managing agent of a partnership;
(ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
total issued and outstanding stock of a corporation; or
(iii) a manager or member who owns at least 20% of a limited liability company.
(c) The commission may not issue a package agency, license, or permit to a person
acting in an individual capacity if that person was:
(i) a partner or managing agent of a partnership that had any type of agency, license, or
permit issued under this title revoked within the last three years;
(ii) a managing agent, officer, director, or stockholder who held at least 20% of the
total issued and outstanding stock of a corporation that had any type of agency, license, or
permit issued under this title revoked within the last three years; or
(iii) a manager or member who owned at least 20% of the limited liability company
that had any type of agency, license, or permit issued under this title revoked within the last
three years.
(5) (a) The commission may not issue a package agency, license, or permit to a minor.
(b) The commission may not issue a package agency, license, or permit to a
partnership, corporation, or limited liability company if any of the following is a minor:
(i) a partner or managing agent of the partnership;
(ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
total issued and outstanding stock of the corporation; or
(iii) a manager or member who owns at least 20% of the limited liability company.
(c) For purposes of Subsection (5)(b), the commission may not consider a minor's
position with or ownership interest in an entity that has an ownership interest in the entity that
is applying for the package agency, license, or permit unless the minor would exercise direct
decision-making control over the package agency, license, or permit.
(6) Except as described in Section 
32B-8-501
, if a package agent, licensee, or permittee
no longer possesses the qualifications required by this title for obtaining a package agency,
license, or permit, the commission may terminate the package agency agreement, or revoke the
license or permit.
(7) (a) If the licensee is a resort licensee:
(i) Subsection (1)(a) only applies if an individual listed in Subsection (1)(b) engages in
the management of the resort, as the commission defines in rule; and
(ii) Subsection (1)(c) only applies to an individual employed to act in a supervisory or
managerial capacity for the resort licensee or in relation to a sublicense of the resort license.
(b) If the permittee is a public service permittee under Chapter 10, Special Use Permit
Act:
(i) Subsection (1)(a) only applies if an individual listed in Subsection (1)(b) engages in
the management of the [
airline, railroad, or other public conveyance
] 
public service permittee
,
as the commission defines in rule; and
(ii) Subsection (1)(c) only applies to an individual employed to act in a supervisory or
managerial capacity for the public service permittee.
Section 3. Section 
32B-2-201
 is amended to read:
32B-2-201.
Alcoholic Beverage Services Commission created.
(1) There is created the [
"Alcoholic Beverage Services Commission." The commission
is the governing board over the department
] 
Alcoholic Beverage Services Commission
.
(2) (a) The commission is composed of seven part-time commissioners appointed by
the governor with the advice and consent of the Senate in accordance with Title 63G, Chapter
24, Part 2, Vacancies.
(b) No more than four commissioners may be of the same political party.
(3) (a) Except as required by Subsection (3)(b), as terms of commissioners expire, the
governor shall appoint each new commissioner or reappointed commissioner to a four-year
term.
(b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
time of appointment or reappointment, adjust the length of terms to ensure that the terms of no
more than three commissioners expire in a fiscal year.
(4) (a) When a vacancy occurs on the commission for any reason, the governor shall
appoint a replacement for the unexpired term with the advice and consent of the Senate.
(b) Unless removed in accordance with Subsection (6), a commissioner shall remain on
the commission after the expiration of a term until a successor is appointed by the governor,
with the advice and consent of the Senate.
(5) A commissioner shall take the oath of office.
(6) (a) The governor may remove a commissioner from the commission for cause,
neglect of duty, inefficiency, or malfeasance after a public hearing conducted by:
(i) the governor; or
(ii) an impartial hearing examiner appointed by the governor to conduct the hearing.
(b) At least 10 days before the hearing described in Subsection (6)(a), the governor
shall provide the commissioner notice of:
(i) the date, time, and place of the hearing; and
(ii) the alleged grounds for the removal.
(c) The commissioner shall have an opportunity to:
(i) attend the hearing;
(ii) present witnesses and other evidence; and
(iii) confront and cross examine witnesses.
(d) After a hearing under this Subsection (6):
(i) the person conducting the hearing shall prepare written findings of fact and
conclusions of law; and
(ii) the governor shall serve a copy of the prepared findings and conclusions upon the
commissioner.
(e) If a hearing under this Subsection (6) is held before a hearing examiner, the hearing
examiner shall issue a written recommendation to the governor in addition to complying with
Subsection (6)(d).
(f) A commissioner has five days from the day on which the commissioner receives the
findings and conclusions described in Subsection (6)(d) to file written objections to the
recommendation before the governor issues a final order.
(g) The governor shall:
(i) issue the final order under this Subsection (6) in writing; and
(ii) serve the final order upon the commissioner.
(7) A commissioner may not receive compensation or benefits for the commissioner's
service, but may receive per diem and travel expenses in accordance with:
(a) Section 
63A-3-106
;
(b) Section 
63A-3-107
; and
(c) rules made by the Division of Finance pursuant to Sections 
63A-3-106
 and
63A-3-107
.
(8) (a) (i) The governor shall annually appoint the chair of the commission.
(ii) A commissioner serves as chair to the commission at the pleasure of the governor.
(iii) If removed as chair, the commissioner continues to serve as a commissioner unless
removed as a commissioner under Subsection (6).
(b) The commission shall elect:
(i) another commissioner to serve as vice chair; and
(ii) other commission officers as the commission considers advisable.
(c) A commissioner elected under Subsection (8)(b) shall serve in the office to which
the commissioner is elected at the pleasure of the commission.
(9) (a) Each commissioner has equal voting rights on a commission matter when in
attendance at a commission meeting.
(b) Four commissioners is a quorum for conducting commission business.
(c) A majority vote of the quorum present at a meeting is required for the commission
to act.
(d) A commissioner shall comply with the conflict of interest provisions described in
Title 63G, Chapter 24, Part 3, Conflicts of Interest.
(10) (a) The commission shall meet at least monthly, but may hold other meetings at
times and places as scheduled by:
(i) the commission;
(ii) the chair; or
(iii) three commissioners upon filing a written request for a meeting with the chair.
(b) (i) Notice of the time and place of a commission meeting shall be given to each
commissioner, and to the public in compliance with Title 52, Chapter 4, Open and Public
Meetings Act.
(ii) A commission meeting is open to the public, except for a commission meeting or
portion of a commission meeting that is closed by the commission as authorized by Sections
52-4-204
 and 
52-4-205
.
(11) (a) The commission may form one or more subcommittees to help the commission
fulfill the commission's duties under this chapter.
(b) If the commission forms a subcommittee, the chair of the commission shall appoint
the members of the subcommittee.
(c) The commission shall establish the duties of a subcommittee.
Section 4. Section 
32B-2-202
 is amended to read:
32B-2-202.
Powers and duties of the commission.
(1) The commission shall:
(a) consistent with the policy established by the Legislature by statute, act as a general
policymaking body on the subject of alcoholic product control;
(b) adopt and issue policies, rules, and procedures 
in accordance with this title
;
(c) set policy by written rules that establish criteria and procedures for:
(i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
permit, or certificate of approval; and
(ii) determining the location of a state store, package agency, or retail licensee;
(d) decide within the limits, and under the conditions imposed by this title, the number
and location of state stores, package agencies, and retail licensees in the state;
(e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
sublicenses, permits, or certificates of approval for the purchase, storage, sale, offer for sale,
furnishing, consumption, manufacture, and distribution of an alcoholic product:
(i) a package agency;
(ii) a full-service restaurant license;
(iii) a master full-service restaurant license;
(iv) a limited-service restaurant license;
(v) a master limited-service restaurant license;
(vi) a bar establishment license;
(vii) an airport lounge license;
(viii) an on-premise banquet license;
(ix) a resort license, which includes four or more sublicenses;
(x) an on-premise beer retailer license;
(xi) a reception center license;
(xii) a beer-only restaurant license;
(xiii) a hotel license, which includes three or more sublicenses;
(xiv) an arena license, which includes three or more sublicenses;
(xv) a hospitality amenity license;
(xvi) subject to Subsection (5), a single event permit;
(xvii) subject to Subsection (5), a temporary beer event permit;
(xviii) a special use permit;
(xix) a manufacturing license;
(xx) a liquor warehousing license;
(xxi) a beer wholesaling license;
(xxii) a liquor transport license;
(xxiii) an off-premise beer retailer state license;
(xxiv) a master off-premise beer retailer state license;
(xxv) one of the following that holds a certificate of approval:
(A) an out-of-state brewer;
(B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
(C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; and
(xxvi) a spa sublicense;
(f) issue, deny, suspend, or revoke the following conditional licenses:
(i) a conditional retail license as defined in Section 
32B-5-205
; and
(ii) a conditional off-premise beer retailer state license as defined in Section
32B-7-406
;
(g) prescribe the duties of the department in assisting the commission in issuing a
package agency, license, permit, or certificate of approval under this title;
(h) to the extent a fee is not specified in this title, establish a fee allowed under this title
in accordance with Section 
63J-1-504
;
(i) fix prices at which liquor is sold that are the same at all state stores, package
agencies, and retail licensees;
[
(j) issue and distribute price lists showing the price to be paid by a purchaser for each
class, variety, or brand of liquor kept for sale by the department;
]
[
(k) (i) require the director to follow sound management principles; and
]
[
(ii) require periodic reporting from the director to ensure that:
]
[
(A) sound management principles are being followed; and
]
[
(B) policies established by the commission are being observed;
]
[
(l)
] 
(j)
 (i) receive, consider, and act in a timely manner upon the reports,
recommendations, and matters submitted by the director to the commission; and
(ii) do the things necessary to support the department in properly performing the
department's duties;
[
(m)
] 
(k)
 obtain temporarily and for special purposes the services of an expert or
person engaged in the practice of a profession, or a person who possesses a needed skill if:
(i) considered expedient; and
(ii) approved by the governor;
[
(n)
] 
(l)
 prescribe by rule the conduct, management, and equipment of premises upon
which an alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
[
(o)
] 
(m)
 make rules governing the credit terms of beer sales within the state to retail
licensees; and
[
(p)
] 
(n)
 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
disciplinary action against a person subject to administrative action.
(2) Consistent with the policy established by the Legislature by statute, the power of
the commission to do the following is plenary, except as otherwise provided by this title, and
not subject to review:
(a) establish a state store;
(b) issue authority to act as a package agent or operate a package agency; and
(c) issue, deny, or deem forfeit a license, permit, or certificate of approval.
(3) (a) Subject to Subsections (3)(b) and (c), the commission may make rules
permitting and establishing the parameters of a late license renewal.
(b) The commission may not allow for the late renewal of a license after the later of:
(i) the tenth day of the month after the month in which the license type is required to be
renewed; or
(ii) if the tenth day of the month after the month in which the license type is required to
be renewed falls on a Saturday, Sunday, or state or federal holiday, the first business day after
the Saturday, Sunday, or holiday.
(c) The fee for a late license renewal is $300.
(4) If the commission is authorized or required to make a rule under this title, the
commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act.
(5) Notwithstanding Subsections (1)(e)(xvi) and (xvii), the director or deputy director
may issue an event permit in accordance with Chapter 9, Event Permit Act.
Section 5. Section 
32B-2-203
 is amended to read:
32B-2-203.
Department of Alcoholic Beverage Services created.
(1) There is created the Department of Alcoholic Beverage Services. [
The department
is governed by the commission.
]
(2) The director of alcoholic beverage services appointed under Section 
32B-2-205
shall administer the department 
and oversee the department's operations
.
(3) The director shall allocate the duties within the department into the divisions,
bureaus, sections, offices, and committees as the director considers necessary for the
administration of this title.
(4) The department shall cooperate with any other recognized agency in the
administration of this title and in the enforcement of a policy or rule of the commission or
policy of the director.
Section 6. Section 
32B-2-205
 is amended to read:
32B-2-205.
Director of alcoholic beverage services.
(1) (a) [
In accordance with Subsection (1)(b), the
] 
The
 governor, with the advice and
consent of the Senate, shall appoint a director of alcoholic beverage services to a four-year
term. The director may be appointed to more than one four-year term. The director is the
administrative head of the department 
and shall oversee the department's operations
.
[
(b) (i) The governor shall appoint the director from nominations made by the
commission.
]
[
(ii) The commission shall submit the nomination of three individuals to the governor
for appointment of the director.
]
[
(iii) By no later than 30 calendar days from the day on which the governor receives the
three nominations submitted by the commission, the governor may:
]
[
(A) appoint the director; or
]
[
(B) reject the three nominations.
]
[
(iv) If the governor rejects the nominations or fails to take action within the 30-day
period, the commission shall nominate three different individuals from which the governor may
appoint the director or reject the nominations until such time as the governor appoints the
director.
]
[
(v) The governor may reappoint the director without seeking nominations from the
commission. Reappointment of a director is subject to the advice and consent of the Senate.
]
[
(c)
] 
(b)
 (i) If there is a vacancy in the position of director, [
during the nomination
process described in Subsection (1)(b),
] the governor may appoint an interim director for a
period of up to 30 calendar days.
(ii) If a director is not appointed within the 30-day period, the interim director may
continue to serve beyond the 30-day period subject to the advice and consent of the Senate at
the next scheduled time for the Senate giving consent to appointments of the governor.
(iii) Except that if the Senate does not act on the consent to the appointment of the
interim director within 60 days of the end of the initial 30-day period, the interim director may
continue as the interim director.
[
(d) The director may be terminated by:
]
[
(i) the commission by a vote of four commissioners; or
]
[
(ii) the governor after consultation with the commission.
]
(c) The governor may terminate the director at the governor's pleasure.
[
(e)
] 
(d)
 The director may not be a commissioner.
[
(f)
] 
(e)
 The director shall:
(i) be qualified in administration;
(ii) be knowledgeable by experience and training in the field of business management;
and
(iii) possess any other qualification [
prescribed by the commission
] 
the governor
deems important
.
(2) The governor shall establish the director's compensation within the salary range
fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
(3) The director shall:
(a) carry out the policies of the commission 
made in furtherance of the commission's
duties
;
(b) carry out the policies of the department;
(c) [
fully inform
] 
periodically update
 the commission [
of
] 
regarding
 the operations and
administrative activities of the department; and
(d) assist the commission in the proper discharge of the commission's duties.
(4) (a) The director shall form a workgoup that includes representatives from the
following:
(i) the department;
(ii) the Division of Integrated Healthcare created in Section 
26B-1-202
;
(iii) the Department of Public Safety created in Section 
53-10-103
;
(iv) the retail alcohol industry;
(v) the bar or restaurant industry;
(vi) organizations related to alcohol and drug abuse prevention, alcohol or drug related
enforcement, or alcohol or drug related education; and
(vii) any other organization or industry the director determines beneficial.
(b) (i) The workgroup shall study and make recommendations to:
(A) improve the efficacy of the alcohol training and education described in Section
26B-5-205
, including the curriculum, development, provider, and delivery; and
(B) maintain appropriate records of cash sale transactions in bar establishments.
(ii) As part of the recommendations described in Subsection (4)(a)(i)(A), the
workgroup shall include recommendations focused on improving training with respect to laws
governing the responsible sale and service of alcohol.
(c) No later than September 1, 2024, the workgroup shall provide written
recommendations as provided in this Subsection (4) to the Business and Labor Interim
Committee.
Section 7. Section 
32B-2-206
 is amended to read:
32B-2-206.
Powers and duties of the director.
Subject to the powers and responsibilities of the commission under this title, the
director 
shall
:
(1) [
(a) shall prepare and propose to the commission
] 
establish
 general policies, rules,
and procedures governing the administrative activities 
and operations
 of the department; [
and
]
[
(b) may submit other recommendations to the commission as the director considers in
the interest of the commission's or the department's business;
]
[
(2) within the general policies, rules, and procedures of the commission, shall:
]
[
(a)
] 
(2)
 provide day-to-day direction, coordination, and delegation of responsibilities
in the administrative activities of the department's business; [
and
]
[
(b)
] 
(3)
 make internal department policies and procedures relating to:
[
(i)
] 
(a)
 department personnel matters; and
[
(ii)
] 
(b)
 the day-to-day operation of the department;
[
(3)
] 
(4)
 subject to Section 
32B-2-207
, [
shall
] appoint or employ personnel as
considered necessary in the administration of this title, and with regard to the personnel [
shall
]:
(a) prescribe the conditions of employment;
(b) define the respective duties and powers; and
(c) fix the remuneration in accordance with Title 63A, Chapter 17, Utah State
Personnel Management Act;
[
(4)
] 
(5)
 [
shall
] establish and secure adherence to a system of reports, controls, and
performance in matters relating to personnel, security, department property management, and
operation of:
(a) a department office;
(b) a warehouse;
(c) a state store; and
(d) a package agency;
[
(5) within the policies, rules, and procedures approved by the commission and
provisions of law, shall
]
(6)
 purchase, store, keep for sale, sell, import, and control the storage, sale, furnishing,
transportation, or delivery of an alcoholic product;
[
(6) shall prepare for commission approval:
]
[
(a) recommendations regarding the location, establishment, relocation, and closure of
a state store or package agency;
]
[
(b) recommendations regarding the issuance, denial, nonrenewal, suspension, or
revocation of a license, permit, or certificate of approval;
]
[
(c) an annual budget, proposed legislation, and reports as required by law and sound
business principles;
]
[
(d) plans for reorganizing divisions of the department and the functions of the
divisions;
]
[
(e) manuals containing commission and department policies, rules, and procedures;
]
[
(f) an inventory control system;
]
[
(g) any other report or recommendation requested by the commission;
]
[
(h) rules described in Subsection 
32B-2-202
(1)(o) governing the credit terms of the
sale of beer;
]
[
(i) rules governing the calibration, maintenance, and regulation of a calibrated metered
dispensing system;
]
[
(j) rules governing the display of a list of types and brand names of liquor furnished
through a calibrated metered dispensing system;
]
[
(k) price lists issued and distributed showing the price to be paid for each class,
variety, or brand of liquor kept for sale at a state store, package agency, or retail licensee;
]
[
(l) policies or rules prescribing the books of account maintained by the department
and by a state store, package agency, or retail licensee; and
]
[
(m) a policy prescribing the manner of giving and serving a notice required by this
title or rules made under this title;
]
(7) prepare recommendations for the commission regarding:
(a) the location of state stores, package agencies, and retail licensees; and
(b) the issuance, denial, nonrenewal, suspension, or revocation of a license, permit, or
certificate of approval;
(8) develop and maintain an inventory control system;
(9) issue and distribute price lists showing the price to be paid for each class, variety,
or brand of liquor kept for sale at a state store, package agency, or retail licensee;
(10) prepare for commission approval, rules described in Subsection 
32B-2-202
(1)(m)
governing the credit terms of the sale of beer;
(11) makes rules governing:
(a) the calibration, maintenance, and regulation of a calibrated metered dispensing
system;
(b) the display of a list of types and brand names of liquor furnished through a
calibrated metered dispensing system;
(c) the books of account maintained by the department and by a state store, package
agency, or retail licensee; and
(d) the manner of giving and serving a notice required by this title or rules made under
this title;
[
(7)
] 
(12)
 [
shall
] make available through the department to any person, upon request, a
copy of a policy made by the director;
[
(8)
] 
(13)
 [
shall
] make and maintain a current copy of a manual that contains the rules
and policies of the commission and department available for public inspection;
[
(9)
] 
(14)
 (a) after consultation with the governor, [
shall
] determine whether an
alcoholic product should not be sold, offered for sale, or otherwise furnished in an area of the
state during a period of emergency that is proclaimed by the governor to exist in that area; and
(b) [
shall
] issue a necessary public announcement or policy with respect to the
determination described in Subsection [
(9)(a)
] 
(14)(a)
; 
and
[
(10)
] 
(15)
 issue event permits in accordance with [
Chapter 9, Event Permit Act; and
]
Chapter 9, Event Permit Act.
[
(11) shall perform any other duty required by the commission or by law.
]
Section 8. Section 
32B-2-304
 is amended to read:
32B-2-304.
Liquor price -- Remittance of markup -- School lunch program --
Remittance of markup.
(1) For purposes of this section:
(a) (i) "Landed case cost" means 
the sum of
:
(A) the cost of the product; [
and
]
(B) inbound shipping costs [
incurred by the department.
] 
the department incurs; and
(C) case handling costs the department incurs.
(ii) "Landed case cost" does not include the outbound shipping cost from a warehouse
of the department to a state store.
(b) "Proof gallon" means the same as that term is defined in 26 U.S.C. Sec. 5002.
(2) Except as provided in Subsections (3) and (4):
(a) spirituous liquor sold by the department within the state shall be marked up in an
amount not less than [
88%
] 
88.5%
 above the landed case cost to the department;
(b) wine sold by the department within the state shall be marked up in an amount not
less than [
88%
] 
88.5%
 above the landed case cost to the department;
(c) heavy beer sold by the department within the state shall be marked up in an amount
not less than [
66.5%
] 
67%
 above the landed case cost to the department; and
(d) a flavored malt beverage sold by the department within the state shall be marked up
in an amount not less than [
88%
] 
88.5%
 above the landed case cost to the department.
(3) (a) Liquor sold by the department to a military installation in Utah shall be marked
up in an amount not less than 17% above the landed case cost to the department.
(b) Except for spirituous liquor sold by the department to a military installation in
Utah, spirituous liquor that is sold by the department within the state shall be marked up 49%
above the landed case cost to the department if:
(i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000
proof gallons of spirituous liquor in a calendar year; and
(ii) the manufacturer applies to the department for a reduced markup.
(c) Except for wine sold by the department to a military installation in Utah, wine that
is sold by the department within the state shall be marked up 49% above the landed case cost to
the department if:
(i) (A) except as provided in Subsection (3)(c)(i)(B), the wine is manufactured by a
manufacturer producing less than 20,000 gallons of wine in a calendar year; or
(B) for hard cider, the hard cider is manufactured by a manufacturer producing less
than 620,000 gallons of hard cider in a calendar year; and
(ii) the manufacturer applies to the department for a reduced markup.
(d) Except for heavy beer sold by the department to a military installation in Utah,
heavy beer that is sold by the department within the state shall be marked up 32% above the
landed case cost to the department if:
(i) a small brewer manufactures the heavy beer; and
(ii) the small brewer applies to the department for a reduced markup.
(e) The department shall:
(i) for purposes of Subsections (3)(b) and (c), calculate the production amount of a
manufacturer:
(A) by, if the manufacturer is part of a controlled group of manufacturers, including the
combined volume totals of spirituous liquor, wine, or cider, as applicable, for all manufacturers
that constitute the controlled group of manufacturers; and
(B) without considering the manufacturer's production of any other type of alcoholic
product; and
(ii) verify that a manufacturer meets a production amount described in Subsection
(3)(b) or (c) and the production amount of a small brewer [
pursuant to
] 
under
 a federal or other
verifiable production report.
(f) A manufacturer seeking to obtain a reduced markup under Subsection (3)(b), (c), or
(d), shall provide to the department any documentation or information the department
determines necessary to determine if the manufacturer is part of a controlled group of
manufacturers.
(g) The department may, at any time, revoke a reduced markup granted to a
manufacturer under Subsection (3)(b), (c), or (d), if the department determines the
manufacturer no longer qualifies for the reduced markup.
(4) Wine the department purchases on behalf of a subscriber through the wine
subscription program established in Section 
32B-2-702
 shall be marked up not less than 88%
above the cost of the subscription for the interval in which the wine is purchased.
(5) (a) Spirituous liquor, wine, heavy beer, or flavored malt beverage sold by a package
agency located at a manufacturing facility owned or operated by a person licensed under
Chapter 11, Manufacturing and Related Licenses Act, shall be marked up in an amount not less
than 28% above:
(i) the landed case cost to the department; or
(ii) if the department does not receive or store the spirituous liquor, wine, heavy beer,
or flavored malt beverage, the sum of:
(A) the cost of the spirituous liquor, wine, heavy beer, or flavored malt beverage;
(B) the inbound shipping costs the department would have incurred had the department
received or stored the spirituous liquor, wine, heavy beer, or flavored malt beverage, as
determined by the department; and
(C) the case handling costs the department would have incurred had the department
received or stored the spirituous liquor, wine, heavy beer, or flavored malt beverage, as
determined by the department.
(b) A package agency described in Subsection (5)(a) shall remit the markup amount
described in Subsection (5)(a) to the department upon request.
[
(5)
] 
(6)
 The department shall deposit 10% of the total gross revenue from sales of
liquor with the state treasurer to be credited to the Uniform School Fund and used to support
the school meals program administered by the State Board of Education under Section
53E-3-510
.
[
(6)
] 
(7)
 This section does not prohibit the department from selling discontinued items
at a discount.
Section 9. Section 
32B-2-305
 is amended to read:
32B-2-305.
Alcoholic Beverage Control Act Enforcement Fund.
(1) As used in this section:
(a) "Alcohol-related law enforcement officer" means the same as that term is defined in
Section 
32B-1-201
.
(b) "Drug-related law enforcement officer" means a law enforcement officer employed
by the Department of Public Safety who has enforcement of drug-related offenses as a primary
responsibility.
(c) "Enforcement ratio" means the same as that term is defined in Section 
32B-1-201
.
(d) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in
this section.
(e) "SBI drug-related law enforcement officer" means a law enforcement officer
employed by the State Bureau of Investigation within the Department of Public Safety who has
investigation of drug-related offenses as a primary responsibility.
(f) "Social worker" means an individual licensed under Title 58, Chapter 60, Part 2,
Social Worker Licensing Act, and employed by the Department of Public Safety who has
provision of caseworker services to individuals under 21 years old as a primary responsibility.
(2) There is created an expendable special revenue fund known as the "Alcoholic
Beverage Control Act Enforcement Fund."
(3) (a) The fund consists of:
(i) deposits made under Subsection (4); [
and
]
(ii) deposits made under Section 
59-15-109
; and
[
(ii)
] 
(iii)
 interest earned on the fund.
(b) (i) The fund shall earn interest.
(ii) Interest on the fund shall be deposited into the fund.
(4) After the deposit made under Section 
32B-2-304
 for the school lunch program, the
department shall deposit 1.695% of the total gross revenue from the sale of liquor with the state
treasurer to be credited to the fund [
to be:
]
.
(5) The deposits made under Subsection (4) and Section 
59-15-109
 shall be:
(a) used by the Department of Public Safety as provided in Subsection [
(5)
] 
(6)
; and
(b) reallocated to the General Fund as described in Subsection [
(6)
] 
(7)
.
[
(5)
] 
(6)
 (a) The Department of Public Safety shall expend money from the fund to:
(i) supplement appropriations by the Legislature so that the Department of Public
Safety maintains a sufficient number of alcohol-related law enforcement officers such that each
year the enforcement ratio as of July 1 is equal to or less than the number specified in Section
32B-1-201
; and
(ii) maintain at least:
(A) 10 drug-related law enforcement officers;
(B) eight SBI drug-related law enforcement officers; [
and
]
(C) two social workers[
.
]
; and
(D) three additional alcohol-related law enforcement officers who are dedicated to
compliance.
(b) Four of the alcohol-related law enforcement officers described in Subsection
[
(5)(a)(i)
] 
(6)(a)(i)
 shall have as a primary focus the enforcement of this title in relationship to
restaurants.
[
(6)
] 
(7)
 For fiscal year 2023, the Division of Finance shall deposit into the General
Fund $3 million of unspent money in the fund.
Section 10. Section 
32B-2-503
 is amended to read:
32B-2-503.
Operational requirements for a state store.
(1) (a) A state store shall display in a prominent place in the store a sign in large letters
that consists of text in the following order:
(i) a header that reads: "WARNING";
(ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
can cause birth defects and permanent brain damage for the child.";
(iii) a statement in smaller font that reads: "Call the Utah Department of Health at
[insert most current toll-free number] with questions or for more information.";
(iv) a header that reads: "WARNING"; and
(v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
serious crime that is prosecuted aggressively in Utah."
(b) (i) The text described in Subsections (1)(a)(i) through (iii) shall be in a different
font style than the text described in Subsections (1)(a)(iv) and (v).
(ii) The warning statements in the sign described in Subsection (1)(a) shall be in the
same font size.
(c) The Department of Health shall work with the commission and department to
facilitate consistency in the format of a sign required under this section.
(2) A state store may not sell, offer for sale, or furnish liquor except at a price fixed by
the commission.
(3) A state store may not sell, offer for sale, or furnish liquor to:
(a) a minor;
(b) a person actually, apparently, or obviously intoxicated;
(c) a known interdicted person; or
(d) a known habitual drunkard.
(4) (a) A state store employee may not:
(i) consume an alcoholic product on the premises of a state store; or
(ii) allow any person to consume an alcoholic product on the premises of a state store.
(b) A violation of this Subsection (4) is a class B misdemeanor.
(5) (a) Sale or delivery of liquor may not be made on or from the premises of a state
store, and a state store may not be kept open for the sale of liquor:
(i) on Sunday; or
(ii) on a state or federal legal holiday.
(b) Sale or delivery of liquor may be made on or from the premises of a state store, and
a state store may be open for the sale of liquor, only on a day and during hours that the
commission directs by rule or order.
(6) (a) A minor may not be admitted into, or be on the premises of, a state store unless
accompanied by a person who is:
(i) 21 years of age or older; and
(ii) the minor's parent, legal guardian, or spouse.
(b) A state store employee that has reason to believe that a person who is on the
premises of a state store is under the age of 21 and is not accompanied by a person described in
Subsection (6)(a) may:
(i) ask the suspected minor for proof of age;
(ii) ask the person who accompanies the suspected minor for proof of age; and
(iii) ask the suspected minor or the person who accompanies the suspected minor for
proof of parental, guardianship, or spousal relationship.
(c) A state store employee shall refuse to sell liquor to the suspected minor and to the
person who accompanies the suspected minor into the state store if the suspected minor or
person fails to provide information specified in Subsection (6)(b).
(d) A state store employee shall require a suspected minor and the person who
accompanies the suspected minor into the state store to immediately leave the premises of the
state store if the suspected minor or person fails to provide information specified in Subsection
(6)(b).
(7) (a) A state store may not sell, offer for sale, or furnish liquor except in a sealed
container.
(b) A person may not open a sealed container on the premises of a state store.
(8) On or after October 1, 2011, a state store may not sell, offer for sale, or furnish
heavy beer in a sealed container that exceeds two liters.
(9) A state store may not sell, offer for sale, or furnish liquor that is intended to be
frozen and consumed in manner other than as a beverage, including liquor in the form of a
freeze pop, popsicle, ice cream, or sorbet.
Section 11. Section 
32B-3-203
 is amended to read:
32B-3-203.
Initiating a disciplinary proceeding.
Subject to Section 
32B-3-202
:
(1) The department [
may
] 
shall
 initiate a disciplinary proceeding described in
Subsection (2) if the department receives:
(a) a report from an investigator alleging that a person subject to administrative action
violated this title or the rules of the commission;
(b) a final adjudication of criminal liability against a person subject to administrative
action on the basis of an alleged violation of this title; or
(c) a final adjudication of civil liability in accordance with Chapter 15, Alcoholic
Product Liability Act, against a person subject to administrative action on the basis of an
alleged violation of this title.
(2) If the condition of Subsection (1) is met[
,
] 
the department shall:
(a)
 [
the department may
] initiate a disciplinary proceeding to determine:
[
(a)
] 
(i)
 whether a person subject to administrative action violated this title or rules of
the commission; and
[
(b)
] 
(ii)
 if a violation is found, the appropriate sanction to be imposed[
.
]
; and
(b) refer the matter to the State Bureau of Investigation, created in Section 
53-10-301
,
for additional proceedings.
(3) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
(i) if required by law;
(ii) before revoking or suspending a license, permit, or certificate of approval issued
under this title; or
(iii) before imposing a fine against a person subject to administrative action.
(b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
hearing after receiving proper notice is an admission of the charged violation.
(c) The validity of a disciplinary proceeding is not affected by the failure of a person to
attend or remain in attendance.
Section 12. Section 
32B-4-401
 is amended to read:
32B-4-401.
Unlawful sale or furnishing.
(1) It is unlawful for a retail licensee, a permittee, or staff of a retail licensee or
permittee to keep for sale, or to directly or indirectly, sell, offer for sale, or furnish to another,
an alcoholic product, except as otherwise provided by this title.
(2) It is unlawful for a person in the business of selling liquor, a manufacturer, a
supplier, an importer of liquor, or staff of the person, manufacturer, supplier, or importer to
sell, ship, transport, or cause to be sold, shipped, or transported liquor from an out-of-state
location directly or indirectly into this state except to the extent authorized by this title to:
(a) the department;
(b) a military installation;
(c) a holder of a special use permit, to the extent authorized in the special use permit;
or
(d) a liquor warehouser licensee licensed to distribute and transport liquor to:
(i) the department; or
(ii) an out-of-state wholesaler or retailer.
(3) (a) It is unlawful for a person in the business of selling beer, a manufacturer, a
supplier, an importer of beer, or staff of the person, manufacturer, or importer to sell, ship,
transport, or cause to be sold, shipped, or transported beer from an out-of-state location directly
or indirectly into this state except to the extent authorized by this title to:
(i) a beer wholesaler licensee;
(ii) a military installation; or
(iii) a holder of a special use permit, to the extent authorized in the special use permit.
(b) Subsection (3)(a) does not preclude a small brewer that holds a certificate of
approval from selling, shipping, or transporting beer to the extent authorized by Subsection
32B-11-503
(5) directly to:
(i) a beer retailer; or
(ii) an event permittee.
(4) (a) It is unlawful for a manufacturer, supplier, or importer of liquor in this state, or
staff of the manufacturer, supplier, or importer to sell, ship, transport, or cause to be sold,
shipped, or transported liquor directly or indirectly to a person in this state except to the extent
authorized by this title to:
(i) the department;
(ii) a military installation;
(iii) a holder of a special use permit, to the extent authorized in the special use permit;
or
(iv) a liquor warehouser licensee who is licensed to distribute and transport liquor to:
(A) the department; or
(B) an out-of-state wholesaler or retailer.
(b) Subsection (4)(a) does not preclude a winery manufacturing licensee located in this
state from selling wine to a person on its winery premises:
(i) to the extent authorized by Subsection 
32B-11-303
(4); or
(ii) under a package agency issued by the commission on the winery premises.
(c) Subsection (4)(a) does not preclude a distillery manufacturing licensee located in
this state from selling liquor on its distillery premises:
(i) to the extent authorized in Subsection 
32B-11-403
(5); or
(ii) under a package agency issued by the commission on the distillery premises.
(d) Subsection (4)(a) does not preclude a brewery manufacturing licensee located in
this state from selling heavy beer or flavored malt beverages on its brewery premises:
(i) to the extent authorized under Subsection 
32B-11-503
(4); or
(ii) under a package agency issued by the commission on its brewery premises.
(5) (a) It is unlawful for a manufacturer, supplier, or importer of beer in this state, or
staff of the manufacturer, supplier, or importer to sell, ship, transport, or cause to be sold,
shipped, or transported beer directly or indirectly to a person in this state except to the extent
authorized by this title to:
(i) a beer wholesaler licensee;
(ii) a military installation; or
(iii) a holder of a special use permit, to the extent authorized in the special use permit.
(b) Subsection (5)(a) does not preclude:
(i) a small brewer who is a brewery manufacturing licensee located in this state from
selling, shipping, and transporting beer to the extent authorized by Subsection 
32B-11-503
(5)
directly to one of the following in this state:
(A) a beer retailer; or
(B) an event permittee; or
(ii) a brewery manufacturing licensee from selling beer to a person on its
manufacturing premises under Subsection 
32B-11-503
(4)(c).
(6) It is unlawful for a person other than a person described in Subsection (2) or (3) to
sell, ship, transport, or cause to be sold, shipped, or transported an alcoholic product from an
out-of-state location directly or indirectly into this state, except as otherwise provided by this
title.
(7) It is unlawful for a person in this state other than a person described in Subsection
(4) or (5) to sell, ship, transport, or cause to be sold, shipped, or transported an alcoholic
product directly or indirectly to another person in this state, except as otherwise provided by
this title.
(8) It is unlawful for a person in the business of selling liquor, a manufacturer, a
supplier, or an importer of liquor in this state, or staff of the person, manufacturer, supplier, or
importer to keep for sale, or to directly or indirectly, sell, offer for sale, or furnish to another,
liquor that contains more than 80% alcohol by volume.
[
(8)
] 
(9)
 (a) A violation of Subsection (1) is a class B misdemeanor, except when
otherwise provided by this title.
(b) A violation of Subsection (2), (3), (4), or (5) is a third degree felony.
(c) A violation of Subsection [
(6) or (7)
] 
(6), (7), or (8)
 is a class B misdemeanor.
Section 13. Section 
32B-4-422
 is amended to read:
32B-4-422.
Unlawful dispensing.
(1) A retail licensee licensed under this title to sell, offer for sale, or furnish spirituous
liquor for consumption on the licensed premises, or staff of the retail licensee may not:
(a) sell, offer for sale, or furnish a primary spirituous liquor to a person on the licensed
premises except in a quantity that does not exceed 1.5 ounces per beverage dispensed through a
calibrated metered dispensing system approved by the department;
(b) sell, offer for sale, or furnish more than a total of 2.5 ounces of spirituous liquor per
beverage;
(c) allow a person on the licensed premises to have more than a total of 2.5 ounces of
spirituous liquor at a time; or
(d) (i) except as provided in Subsection (1)(d)(ii), allow a person to have more than
two spirituous liquor beverages at a time; or
(ii) allow a person on the premises of the following to have more than one spirituous
liquor beverage at a time:
(A) a full-service restaurant licensee;
(B) a person operating under a full-service restaurant sublicense;
(C) an on-premise banquet licensee;
(D) a person operating under an on-premise banquet sublicense; [
or
]
(E) a single event permittee[
.
]
; or
(F) a hospitality amenity licensee.
(2) A violation of this section is a class C misdemeanor.
Section 14. Section 
32B-4-424
 is amended to read:
32B-4-424.
Powdered or vaporized alcohol.
(1) As used in this section[
, "powdered alcohol"
]
:
(a) "Powdered alcohol"
 means a product that is in a powdered or crystalline form and
contains any amount of alcohol.
(b) "Vaporized alcohol" means a product created by mixing alcohol with pure oxygen
or another gas to produce a vaporized product for the purpose of consumption through
inhalation.
(2) It is unlawful for a person to use, offer for use, purchase, offer to purchase, sell,
offer to sell, furnish, or possess [
powdered alcohol
] for human consumption 
powdered alcohol
or vaporized alcohol
.
(3) It is unlawful for a holder of a retail license to use powdered alcohol 
or vaporized
alcohol
 as an alcoholic product.
(4) This section does not apply to the use of powdered alcohol 
or vaporized alcohol
 for
a commercial use specifically approved by state law or bona fide research purposes by a:
(a) health care practitioner that operates primarily for the purpose of conducting
scientific research;
(b) department, commission, board, council, agency, institution, division, office,
committee, authority, laboratory, library, unit, bureau, panel, or other administrative unit of the
state, including a state institution of higher education listed in Section 
53B-2-101
;
(c) private college or university research facility; or
(d) pharmaceutical or biotechnology company.
Section 15. Section 
32B-4-501
 is amended to read:
32B-4-501.
Operating without a license or permit.
(1) A person may not operate the following businesses without first obtaining a license
under this title if the business allows a person to purchase or consume an alcoholic product on
the premises of the business:
(a) a restaurant;
(b) an airport lounge;
(c) a business operated in the same manner as a bar establishment licensee;
(d) a resort;
(e) a business operated to sell, offer for sale, or furnish beer for on-premise
consumption;
(f) a business operated as an on-premise banquet licensee;
(g) a hotel; [
or
]
(h) an arena; or
[
(h)
] 
(i)
 a business similar to one listed in Subsections (1)(a) through [
(g)
] 
(h)
.
(2) A person conducting an event that is open to the general public may not directly or
indirectly sell, offer for sale, or furnish an alcoholic product to a person attending the event
without first obtaining an event permit under this title.
(3) A person conducting a private event may not directly or indirectly sell or offer for
sale an alcoholic product to a person attending the private event without first obtaining an
event permit under this title.
(4) A person may not operate the following businesses in this state without first
obtaining a license under this title:
(a) a winery manufacturer;
(b) a distillery manufacturer;
(c) a brewery manufacturer;
(d) a local industry representative of:
(i) a manufacturer of an alcoholic product;
(ii) a supplier of an alcoholic product; or
(iii) an importer of an alcoholic product;
(e) a liquor warehouser; or
(f) a beer wholesaler.
(5) A person may not operate a public conveyance in this state without first obtaining a
public service permit under this title if that public conveyance allows a person to purchase or
consume an alcoholic product:
(a) on the public conveyance; or
(b) on the premises of a hospitality room located within a depot, terminal, or similar
facility at which a service is provided to a patron of the public conveyance.
Section 16. Section 
32B-5-201
 is amended to read:
32B-5-201.
Application requirements for retail license.
(1) (a) Before a person may store, sell, offer for sale, furnish, or permit consumption of
an alcoholic product on licensed premises as a retail licensee, the person shall first obtain a
retail license issued by the commission, notwithstanding whether the person holds a local
license or a permit issued by a local authority.
(b) Violation of this Subsection (1) is a class B misdemeanor.
(2) To obtain a retail license under this title, a person shall submit to the department:
(a) a written application in a form prescribed by the department;
(b) a nonrefundable application fee in the amount specified in the relevant chapter or
part for the type of retail license for which the person is applying;
(c) an initial license fee:
(i) in the amount specified in the relevant chapter or part for the type of retail license
for which the person is applying; and
(ii) that is refundable if a retail license is not issued;
(d) written consent of the local authority, including, if applicable, consent for each
proposed sublicense;
(e) a copy of:
(i) every license the local authority requires, including the person's current business
license; and
(ii) if the person is applying for a principal license, the current business license for each
proposed sublicense, except if the local authority determines that the business license for a
proposed sublicense is included in the person's current business license;
(f) evidence of the proposed retail licensee's proximity to any community location, with
proximity requirements being governed by Section 
32B-1-202
;
(g) a bond as specified by Section 
32B-5-204
;
(h) a floor plan, and boundary map where applicable, of the premises of the retail
license and each, if any, accompanying sublicense, including any:
(i) consumption area; and
(ii) area where the person proposes to store, sell, offer for sale, or furnish an alcoholic
beverage;
(i) evidence that the retail licensee carries public liability insurance in an amount and
form satisfactory to the department;
(j) evidence that the retail licensee carries dramshop insurance coverage of at least:
(i) $1,000,000 per occurrence and $2,000,000 in the aggregate;
(ii) if the retail licensee is a hotel licensee or a resort licensee, $1,000,000 per
occurrence and $2,000,000 in the aggregate to cover both the principal license and all
accompanying sublicenses; or
(iii) if the retail licensee is an arena licensee, $10,000,000 per occurrence and
$20,000,000 in the aggregate to cover both the arena license and all accompanying
sublicenses[
.
]
;
(k) a signed consent form stating that the retail licensee will permit any authorized
representative of the commission, department, or any law enforcement officer to have
unrestricted right to enter:
(i) the premises of the retail licensee; and
(ii) if applicable, the premises of each of the retail licensee's accompanying
sublicenses;
(l) if the person is an entity, proper verification evidencing that a person who signs the
application is authorized to sign on behalf of the entity;
(m) a responsible alcohol service plan;
(n) evidence that each individual the person has hired to work as a retail manager, as
defined in Section 
32B-1-701
, has completed the alcohol training and education seminar as
required under Chapter 1, Part 7, Alcohol Training and Education Act; and
(o) any other information the commission or department may require.
(3) The commission may not issue a retail license to a person who:
(a) is disqualified under Section 
32B-1-304
; or
(b) is not lawfully present in the United States.
(4) Unless otherwise provided in the relevant chapter or part for the type of retail
license for which the person is applying, the commission may not issue a retail license to a
person if the proposed licensed premises does not meet the proximity requirements of Section
32B-1-202
.
(5) The commission may not deny an application for a retail license or an application
for a conditional retail license under Section 
32B-5-205
, if:
(a) the applicant satisfies the requirements of this chapter; and
(b) granting the retail license or the conditional retail license would not cause the
commission to exceeded the maximum number of licenses of that retail license type that the
commission is authorized to issue under this chapter.
Section 17. Section 
32B-5-304
 is amended to read:
32B-5-304.
Portions in which alcoholic product may be sold.
(1) (a) A retail licensee may sell, offer for sale, or furnish spirituous liquor that is a
primary spirituous liquor only in a quantity that does not exceed 1.5 ounces per beverage
dispensed through a calibrated metered dispensing system approved by the department in
accordance with commission rules adopted under this title.
(b) A retail license is not required to dispense spirituous liquor through a calibrated
metered dispensing system if the spirituous liquor is:
(i) a secondary flavoring ingredient;
(ii) used as a flavoring on a dessert; [
or
]
(iii) used to set aflame a food dish, drink, or dessert[
.
]
; or
(iv) in a beverage that:
(A) is served to a patron in the original, sealed container;
(B) is not more than 16 fluid ounces;
(C) contains no more than 10% alcohol by volume or 8% by weight; and
(D) is in a container that has the alcohol by volume percentage on the front label and in
a font that measures at least three millimeters high.
(c) A retail licensee that dispenses spirituous liquor that is a secondary flavoring
ingredient shall:
(i) designate a location where the retail licensee stores secondary flavoring ingredients
on the floor plan the retail licensee submits to the department; and
(ii) clearly and conspicuously label each secondary flavoring ingredient's container
"flavorings".
(d) 
(i)
 A patron may have no more than 2.5 ounces of spirituous liquor at a time.
(ii) Subsection (1)(d)(i) does not apply to a beverage described in Subsection (1)(b)(iv).
(2) (a) (i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an
individual portion that does not exceed 5 ounces per glass or individual portion.
(ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine to
a patron in more than one glass if the total amount of wine does not exceed 5 ounces.
(b) (i) A retail licensee may sell, offer for sale, or furnish wine in a container not
exceeding 1.5 liters at a price fixed by the commission to a table of four or more persons.
(ii) A retail licensee may sell, offer for sale, or furnish wine in a container not to
exceed 750 milliliters at a price fixed by the commission to a table of less than four persons.
(c) Notwithstanding Subsections (2)(a) and (b), a retail licensee may sell, offer for sale,
or furnish hard cider that contains no more than 5% of alcohol by volume in a sealed container
not to exceed 16 ounces.
(3) A retail licensee may sell, offer for sale, or furnish heavy beer in an original
container at a price fixed by the commission, except that the original container may not exceed
one liter.
(4) A retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an
original container at a price fixed by the commission, except that the original container may not
exceed one liter.
(5) (a) (i) Subject to Subsection (5)(a)(ii), a retail licensee may sell, offer for sale, or
furnish beer for on-premise consumption:
(A) in an open original container; and
(B) in a container on draft.
(ii) A retail licensee may not sell, offer for sale, or furnish beer under Subsection
(5)(a)(i):
(A) in a size of container that exceeds two liters; or
(B) to an individual patron in a size of container that exceeds one liter.
(b) A retail licensee may sell, offer for sale, or furnish beer for off-premise
consumption:
(i) in a sealed container; and
(ii) in a size of container that does not exceed two liters.
(c) A retail licensee may sell, offer for sale, or furnish a flight of beer to an individual
patron if the total amount of beer does not exceed 16 ounces.
Section 18. Section 
32B-6-203
 is amended to read:
32B-6-203.
Commission's power to issue full-service restaurant license.
(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
an alcoholic product on its premises as a full-service restaurant, the person shall first obtain a
full-service restaurant license from the commission in accordance with this part.
(2) The commission may issue a full-service restaurant license to establish full-service
restaurant licensed premises at places and in numbers the commission considers proper for the
storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises
operated as a full-service restaurant.
(3) Subject to Section 
32B-1-201
:
(a) the commission may not issue a total number of full-service restaurant licenses that
at any time exceeds the sum of:
(i) 30; and
(ii) the number determined by dividing the population of the state by [
4,467;
]
:
(A) before July 1, 2024, 4,467;
(B) in fiscal year 2025, 4,281;
(C) in fiscal year 2026, 4,095;
(D) in fiscal year 2027, 3,909;
(E) in fiscal year 2028, 3,723;
(F) in fiscal year 2029, 3,537;
(G) in fiscal year 2030, 3,351; and
(H) in fiscal year 2031, and in each fiscal year thereafter, 3,167;
(b) the commission may issue a seasonal full-service restaurant license in accordance
with Section 
32B-5-206
; and
(c) (i) if the location, design, and construction of a hotel may require more than one
full-service restaurant sales location within the hotel to serve the public convenience, the
commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as
many as three full-service restaurant locations within the hotel under one full-service restaurant
license if:
(A) the hotel has a minimum of 150 guest rooms; and
(B) the locations under the full-service restaurant license are:
(I) within the same hotel; and
(II) on premises that are managed or operated, and owned or leased, by the full-service
restaurant licensee; and
(ii) except for a hotel, a facility shall have a separate full-service restaurant license for
each full-service restaurant where an alcoholic product is sold, offered for sale, or furnished.
(4) Except as otherwise provided in Section 
32B-1-202
, the commission may not issue
a full-service restaurant license for premises that do not meet the proximity requirements of
Subsection 
32B-1-202
(2).
(5) To be licensed as a full-service restaurant, a person shall maintain at least 70% of
the restaurant's gross revenues from the sale of food, which does not include:
(a) mix for an alcoholic product; or
(b) a service charge.
Section 19. Section 
32B-6-204
 is amended to read:
32B-6-204.
Specific licensing requirements for full-service restaurant license.
(1) To obtain a full-service restaurant license a person shall comply with Chapter 5,
Part 2, Retail Licensing Process.
(2) (a) A full-service restaurant license expires on October 31 of each year.
(b) To renew a person's full-service restaurant license, a person shall comply with the
renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
September 30.
(3) (a) The nonrefundable application fee for a full-service restaurant license is $330.
(b) 
(i)
 The initial license fee for a full-service restaurant license is $2,200.
(ii) The department shall prorate the $2,200 initial license fee based on the number of
months out of a year the full-service restaurant licensee is licensed before the day on which the
full-service restaurant license expires.
(c) The renewal fee for a full-service restaurant license is $1,650.
(4) The bond amount required for a full-service restaurant license is the penal sum of
$10,000.
Section 20. Section 
32B-6-206
 is amended to read:
32B-6-206.
Master full-service restaurant license.
(1) (a) The commission may issue a master full-service restaurant license that
authorizes a person to store, sell, offer for sale, furnish, or allow the consumption of an
alcoholic product on premises at multiple locations as full-service restaurants if the person
applying for the master full-service restaurant license:
(i) owns each of the full-service restaurants;
(ii) except for the fee requirements, establishes to the satisfaction of the commission
that each location of a full-service restaurant under the master full-service restaurant license
separately meets the requirements of this part; and
(iii) the master full-service restaurant license includes at least five full-service
restaurant locations.
(b) The person seeking a master full-service restaurant license shall designate which
full-service restaurant locations the person seeks to have under the master full-service
restaurant license.
(c) A full-service restaurant location under a master full-service restaurant license is
considered separately licensed for purposes of this title, except as provided in this section.
(2) A master full-service restaurant license and each location designated under
Subsection (1) are considered a single full-service restaurant license for purposes of Subsection
32B-6-203
(3)(a).
(3) (a) A master full-service restaurant license expires on October 31 of each year.
(b) To renew a person's master full-service restaurant license, a person shall comply
with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
September 30.
(4) (a) The nonrefundable application fee for a master full-service restaurant license is
$330.
(b) (i) The initial license fee for a master full-service restaurant license is $5,000 plus a
separate initial license fee for each newly licensed full-service restaurant [
license
] 
location
under the master full-service restaurant license determined in accordance with Subsection
32B-6-204
(3)(b).
(ii) The department [
may
] 
shall
 prorate the $5,000 initial license fee based on the
number of months out of a year the master full-service restaurant licensee is licensed before the
day on which the master full-service restaurant license expires.
(c) To renew a master full-service restaurant license the master full-service restaurant
licensee shall pay a separate renewal fee for each full-service [
license
] 
restaurant location
 under
the master full-service restaurant license [
determined
] in accordance with Subsection
32B-6-204
(3)(c).
(5) A new location may be added to a master full-service restaurant license after the
master full-service restaurant license is issued if:
(a) the master full-service restaurant licensee pays a nonrefundable application fee of
$330; and
(b) including payment of the initial license fee, the location separately meets the
requirements of this part.
(6) (a) A master full-service restaurant licensee shall notify the department of a change
in the persons managing a location covered by a master full-service restaurant license:
(i) immediately, if the management personnel is not management personnel at a
location covered by the master full-service restaurant licensee at the time of the change; or
(ii) within 30 days of the change, if the master full-service restaurant licensee is
transferring management personnel from one location to another location covered by the master
full-service restaurant licensee.
(b) A location covered by a master full-service restaurant license shall keep the
location's own records on the location's premises so that the department may audit the records.
(c) A master full-service restaurant licensee may not transfer alcoholic products
between different locations covered by the master full-service restaurant license.
(7) If there is a violation of this title at a location covered by a master full-service
restaurant license, the violation may result in disciplinary action in accordance with Chapter 3,
Disciplinary Actions and Enforcement Act, against:
(a) the single location under a master full-service restaurant license;
(b) individual staff of the location under the master full-service restaurant license; or
(c) a combination of persons or locations described in Subsections (7)(a) and (b).
(8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to establish how a person may apply for a master full-service
restaurant license under this section.
Section 21. 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 the dining
area and any waiting area to the nearest edge of the dispensing structure; or
(iii) is physically separated from the dining area and any waiting area by a permanent
physical structure that complies with the provisions of Title 15A, State Construction and Fire
Codes Act, and, to the extent allowed under Title 15A, State Construction and Fire Codes Act,
measures:
(A) at least 42 inches high; and
(B) at least 60 inches from the inside edge of the barrier to the nearest edge of the
dispensing structure.
(b) "Dispensing area" does not include any area described in Subsection (2)(a)(ii) that
is less than 10 feet from an area where alcoholic product is dispensed, but from which a patron
seated at a table or counter cannot view the dispensing of alcoholic product.
(3) "Small limited-service restaurant licensee" means a limited-service restaurant
licensee [
that has a grandfathered bar structure
] whose dispensing area includes more than 45%
of the available seating for patrons on the licensed premises, excluding outdoor seating:
(a) when measured in accordance with Subsection (2)(a)(ii); and
(b) based on the licensee's floor plan on file with the department on July 1, 2017.
(4) "Waiting area" includes a lobby. 
Section 22. Section 
32B-6-304
 is amended to read:
32B-6-304.
Specific licensing requirements for limited-service restaurant license.
(1) To obtain a limited-service restaurant license a person shall comply with Chapter 5,
Part 2, Retail Licensing Process.
(2) (a) A limited-service restaurant license expires on October 31 of each year.
(b) To renew a person's limited-service restaurant license, a person shall comply with
the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
September 30.
(3) (a) The nonrefundable application fee for a limited-service restaurant license is
$330.
(b) 
(i)
 The initial license fee for a limited-service restaurant license is $1,275.
(ii) The department shall prorate the $1,275 initial license fee based on the number of
months out of a year the limited-service restaurant licensee is licensed before the day on which
the limited-service restaurant license expires.
(c) The renewal fee for a limited-service restaurant license is $750.
(4) The bond amount required for a limited-service restaurant license is the penal sum
of $5,000.
Section 23. Section 
32B-6-306
 is amended to read:
32B-6-306.
Master limited-service restaurant license.
(1) (a) The commission may issue a master limited-service restaurant license that
authorizes a person to store, sell, offer for sale, furnish, or allow the consumption of an
alcoholic product on premises at multiple locations as limited-service restaurants if the person
applying for the master limited-service restaurant license:
(i) owns each of the limited-service restaurants;
(ii) except for the fee requirements, establishes to the satisfaction of the commission
that each location of a limited-service restaurant under the master limited-service restaurant
license separately meets the requirements of this part; and
(iii) the master limited-service restaurant includes at least five limited-service
restaurant locations.
(b) The person seeking a master limited-service restaurant license shall designate
which limited-service restaurant locations the person seeks to have under the master
limited-service restaurant license.
(c) A limited-service restaurant location under a master limited-service restaurant
license is considered separately licensed for purposes of this title, except as provided in this
section.
(2) A master limited-service restaurant license and each location under Subsection (1)
are considered a single limited-service restaurant license for purposes of Subsection
32B-6-303
(3)(a).
(3) (a) A master limited-service restaurant license expires on October 31 of each year.
(b) To renew a person's master limited-service restaurant license, a person shall comply
with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
September 30.
(4) (a) The nonrefundable application fee for a master limited-service restaurant license
is $330.
(b) 
(i)
 The initial license fee for a master limited-service restaurant license is $5,000
plus a separate initial license fee for each newly licensed limited-service restaurant license
under the master limited-service restaurant license determined in accordance with Subsection
32B-6-304
(3)(b).
(ii) The department shall prorate the $5,000 initial license fee based on the number of
months out of a year the master limited-service restaurant licensee is licensed before the day on
which the master limited-service restaurant license expires.
(c) The renewal fee for a master limited-service restaurant license is $500 plus a
separate renewal fee for each limited-service license under the master limited-service restaurant
license determined in accordance with Subsection 
32B-6-304
(3)(c).
(5) A new location may be added to a master limited-service restaurant license after the
master limited-service restaurant license is issued if:
(a) the master limited-service restaurant licensee pays a nonrefundable application fee
of $330; and
(b) including payment of the initial license fee, the location separately meets the
requirements of this part.
(6) (a) A master limited-service restaurant licensee shall notify the department of a
change in the persons managing a location covered by a master limited-service restaurant
license:
(i) immediately, if the management personnel is not management personnel at a
location covered by the master limited-service restaurant licensee at the time of the change; or
(ii) within 30 days of the change, if the master limited-service restaurant licensee is
transferring management personnel from one location to another location covered by the master
limited-service restaurant licensee.
(b) A location covered by a master limited-service restaurant license shall keep its own
records on its premises so that the department may audit the records.
(c) A master limited-service restaurant licensee may not transfer alcoholic products
between different locations covered by the master limited-service restaurant license.
(7) (a) If there is a violation of this title at a location covered by a master
limited-service restaurant license, the violation may result in disciplinary action in accordance
with Chapter 3, Disciplinary Actions and Enforcement Act, against:
(i) the single location under a master limited-service restaurant license;
(ii) individual staff of the location under the master limited-service restaurant license;
or
(iii) a combination of persons or locations described in Subsections (7)(a)(i) and (ii).
(b) In addition to disciplinary action under Subsection (7)(a), disciplinary action in
accordance with Chapter 3, Disciplinary Actions and Enforcement Act, may be taken against a
master limited-service restaurant licensee or individual staff of the master limited-service
restaurant licensee if during a period beginning on November 1 and ending October 31:
(i) at least 25% of the locations covered by the master limited-service restaurant license
have been found by the commission to have committed a serious or grave violation of this title,
as defined by rule made by the commission; or
(ii) at least 50% of the locations covered by the master limited-service restaurant
license have been found by the commission to have violated this title.
(8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to establish how a person may apply for a master
limited-service restaurant license under this section.
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 the person's premises as a bar establishment licensee, the person shall
first obtain a bar establishment license from the commission in accordance with this part.
(2) The commission may issue a bar establishment license to establish bar
establishment licensed premises at places and in numbers the commission considers proper for
the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on
premises operated by a bar establishment licensee.
(3) Subject to Section 
32B-1-201
:
(a) the commission may not issue a total number of bar establishment licenses that at
any time exceeds the sum of:
(i) 15; and
(ii) the number determined by dividing the population of the state by [
10,200;
]
:
(A) before fiscal July 1, 2024, 10,200;
(B) in fiscal year 2025, 9,778;
(C) in fiscal year 2026, 9,356;
(D) in fiscal year 2027, 8,934;
(E) in fiscal year 2028, 8,512;
(F) in fiscal year 2029, 8,090;
(G) in fiscal year 2030, 7,668; and
(H) in fiscal year 2031, and in each fiscal year thereafter, 7,246;
(b) the commission may issue a seasonal bar establishment license in accordance with
Section 
32B-5-206
 to a bar licensee;
(c) the commission may authorize as many as three bar establishment license locations
within a hotel under one bar establishment license if:
(i) the location, design, and construction of the hotel requires more than one bar license
location within the hotel to serve the public convenience;
(ii) the hotel has a minimum of 150 guest rooms;
(iii) all locations under the bar establishment license are:
(A) within the same hotel; and
(B) on premises that are managed or operated, and owned or leased, by the bar
establishment licensee;
(d) the commission may authorize up to five dispensing [
structures
] 
locations
 under
one equity license if the locations under the equity license:
(i) are connected by a private roadway to which the equity licensee, each member of
the equity licensee, and each guest has a legal right of access; and
(ii) are 
located on premises
 managed or operated, and owned or leased, by the equity
licensee;
(e) except for a facility operating in accordance with Subsection (3)(d) or a hotel, a
facility shall have a separate bar establishment license for each bar establishment license
location where an alcoholic product is sold, offered for sale, or furnished;
(f) when a business establishment undergoes a change of ownership, the commission
may issue a bar establishment license to the new owner of the business establishment
notwithstanding that there is no bar establishment license available under Subsection (3)(a) if:
(i) the primary business activity at the business establishment before and after the
change of ownership is not the sale, offer for sale, or furnishing of an alcoholic product;
(ii) before the change of ownership there are two or more licensed premises on the
business establishment that operate under a retail license, with at least one of the retail licenses
being a bar establishment license;
(iii) subject to Subsection (3)(g) the licensed premises of the bar establishment license
issued under this Subsection (3)(f) is at the same location where the bar establishment license
licensed premises was located before the change of ownership; and
(iv) the person who is the new owner of the business establishment qualifies for the bar
establishment license, except for there being no bar establishment license available under
Subsection (3)(a); and
(g) if a bar establishment licensee of a bar establishment license issued under
Subsection (3)(f) requests a change of location, the bar establishment licensee may retain the
bar establishment license after the change of location only if on the day on which the bar
establishment licensee seeks a change of location a bar establishment license is available under
Subsection (3)(a).
Section 25. Section 
32B-6-405
 is amended to read:
32B-6-405.
Specific licensing requirements for bar establishment license.
(1) To obtain a bar establishment license, in addition to complying with Chapter 5, Part
2, Retail Licensing Process, a person shall submit with the written application:
(a) (i) a statement as to whether the person is seeking to qualify as:
(A) an equity licensee;
(B) a fraternal licensee;
(C) a dining club licensee; or
(D) a bar licensee; and
(ii) evidence that the person meets the requirements for the type of bar establishment
license for which the person is applying;
(b) evidence that the person operates a premises where a variety of food is prepared
and served in connection with dining accommodations; and
(c) if the person is applying for an equity license or fraternal license, a copy of the
entity's bylaws or house rules, and an amendment to those records.
(2) The commission may refuse to issue a bar establishment license to a person for an
equity license or fraternal license if the commission determines that a provision of the person's
bylaws or house rules, or amendments to those records is not:
(a) reasonable; and
(b) consistent with:
(i) the declared nature and purpose of the bar establishment licensee; and
(ii) the purposes of this part.
(3) (a) A bar establishment license expires on June 30 of each year.
(b) To renew a bar establishment license, a person shall comply with the requirements
of Chapter 5, Part 2, Retail Licensing Process, by no later than May 31.
(4) (a) The nonrefundable application fee for a bar establishment license is $300.
(b) 
(i)
 The initial license fee for a bar establishment license is $2,750.
(ii) The department shall prorate the $2,750 initial license fee based on the number of
months out of a year the bar establishment licensee is licensed before the day on which the bar
establishment license expires.
(c) The renewal fee for a bar establishment license is $2,000.
(5) The bond amount required for a bar establishment license is the penal sum of
$10,000.
Section 26. Section 
32B-6-407
 is amended to read:
32B-6-407.
Specific operational requirements for equity license or fraternal
license.
(1) As used in this section, "equity or fraternal licensee" means an equity licensee or
fraternal licensee.
(2) (a) An equity or fraternal licensee shall have a governing body that:
(i) consists of three or more members of the equity or fraternal licensee; and
(ii) holds regular meetings to:
(A) review membership applications; and
(B) conduct other business as required by the bylaws or house rules of the equity or
fraternal licensee.
(b) (i) An equity or fraternal licensee shall maintain a minute book that is posted
currently by the equity or fraternal licensee.
(ii) The minute book required by this Subsection (2) shall contain the minutes of a
regular or special meeting of the governing body.
(3) An equity or fraternal licensee may admit an individual as a member only on
written application signed by the person, subject to:
(a) the person paying an application fee; and
(b) investigation, vote, and approval of a quorum of the governing body.
(4) An equity or fraternal licensee shall:
(a) record an admission of a member in the official minutes of a regular meeting of the
governing body; and
(b) whether approved or disapproved, file an application as a part of the official records
of the equity or fraternal licensee.
(5) The spouse of a member of an equity or fraternal licensee has the rights and
privileges of the member:
(a) to the extent permitted by the bylaws or house rules of the equity or fraternal
licensee; and
(b) except to the extent restricted by this title.
(6) A minor child of a member of an equity or fraternal licensee has the rights and
privileges of the member:
(a) to the extent permitted by the bylaws or house rules of the equity or fraternal
licensee; and
(b) except to the extent restricted by this title.
(7) An equity or fraternal licensee shall maintain:
(a) a current and complete membership record showing:
(i) the date of application of a proposed member;
(ii) a member's address;
(iii) the date the governing body approved a member's admission;
(iv) the date initiation fees and dues are assessed and paid; and
(v) the serial number of the membership card issued to a member;
(b) a membership list; and
(c) a current record indicating when a member is removed as a member or resigns.
(8) (a) An equity or fraternal licensee shall have bylaws or house rules that include
provisions respecting the following:
(i) standards of eligibility for members;
(ii) limitation of members, consistent with the nature and purpose of the equity or
fraternal licensee;
(iii) the period for which dues are paid, and the date upon which the period expires;
(iv) provisions for removing a member from the equity or fraternal licensee's
membership for the nonpayment of dues or other cause;
(v) provisions for guests; and
(vi) application fees and membership dues.
(b) An equity or fraternal licensee shall maintain a current copy of the equity or
fraternal licensee's current bylaws and current house rules.
(c) An equity or fraternal licensee shall maintain its bylaws or house rules, and any
amendments to those records, on file with the department at all times.
(9) An equity or fraternal licensee may, in its discretion, allow an individual to be
admitted to or use the licensed premises as a guest subject to the following conditions:
(a) the individual is allowed to use the equity or fraternal licensee premises only to the
extent permitted by the equity or fraternal licensee's bylaws or house rules;
(b) the individual shall be previously authorized by a member of the equity or fraternal
licensee who agrees to host the individual as a guest;
(c) the individual has only those privileges derived from the individual's host for the
duration of the individual's visit to the equity or fraternal licensee premises; and
(d) an equity or fraternal licensee or staff of the equity or fraternal licensee may not
enter into an agreement or arrangement with a member of the equity or fraternal licensee to
indiscriminately host a member of the general public into the equity or fraternal licensee
premises as a guest.
(10) Notwithstanding Subsection (9), an individual may be allowed as a guest in an
equity or fraternal licensed premises without a host if:
(a) (i) the equity or fraternal licensee is an equity licensee; and
(ii) the individual is a member of an equity licensee that has reciprocal guest privileges
with the equity licensee for which the individual is a guest;
(b) (i) the equity or fraternal licensee is a fraternal licensee; and
(ii) the individual is a member of the same fraternal organization as the fraternal
licensee for which the individual is a guest; or
(c) (i) the equity or fraternal licensee is a fraternal licensee that holds the fraternal
license on July 1, 2013;
(ii) the equity or fraternal licensee's bylaws permit guests in the equity or fraternal
licensed premises without a host except that a minor may not be admitted as a guest without a
host; and
(iii) the equity or fraternal licensee maintains 60% of its total business from the sale of
food, not including mix for alcoholic products, or service charges.
(11) Unless the patron is a member or guest, an equity or fraternal licensee may not:
(a) sell, offer for sale, or furnish an alcoholic product to the patron; or
(b) allow the patron to be admitted to or use the licensed premises.
(12) A minor may not be a member, officer, director, or trustee of an equity or fraternal
licensee.
(13) An equity licensee that owns or operates a golf course may dispense or serve an
alcoholic beverage from a mobile dispensing unit while the mobile dispensing unit is located in
one or more designated areas.
Section 27. Section 
32B-6-504
 is amended to read:
32B-6-504.
Specific licensing requirements for airport lounge license.
(1) To obtain an airport lounge license, in addition to complying with Chapter 5, Part
2, Retail Licensing Process, a person shall submit with the written application:
(a) both the written consent of the local authority and the written consent of the airport
authority; and
(b) a copy of the sign proposed to be used by the airport lounge licensee on its licensed
premises to inform the public that alcoholic products are sold and consumed on the licensed
premises.
(2) (a) An airport lounge license expires on October 31 of each year.
(b) To renew a person's airport lounge license, a person shall comply with the renewal
requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
(3) (a) The nonrefundable application fee for an airport lounge license is $300.
(b) 
(i)
 The initial license fee for an airport lounge license is $8,000.
(ii) The department shall prorate the $8,000 initial license fee based on the number of
months out of a year the airport lounge licensee is licensed before the day on which the airport
lounge license expires.
(c) The renewal fee for an airport lounge license is $6,000.
(4) The bond amount required for an airport lounge license is the penal sum of
$10,000.
(5) An airport lounge license is not subject to the proximity requirements of Section
32B-1-202
.
Section 28. Section 
32B-6-604
 is amended to read:
32B-6-604.
Specific licensing requirements for an on-premise banquet license.
(1) To obtain an on-premise banquet license a person shall comply with Chapter 5, Part
2, Retail Licensing Process.
(2) (a) An on-premise banquet license expires on October 31 of each year.
(b) To renew a person's on-premise banquet license, a person shall comply with the
requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
(3) (a) The nonrefundable application fee for an on-premise banquet license is $300.
(b) 
(i)
 The initial license fee for an on-premise banquet license is $750.
(ii) The department shall prorate the $750 initial license fee based on the number of
months out of a year the on-premise banquet licensee is licensed before the day on which the
on-premise banquet license expires.
(c) The renewal fee for an on-premise banquet license is $750.
(4) The bond amount required for an on-premise banquet license is the penal sum of
$10,000.
(5) Notwithstanding the other provisions of this part, if an applicant is a state agency or
political subdivision of the state it is not required to:
(a) pay an application fee, initial license fee, or renewal fee;
(b) obtain the written consent of the local authority;
(c) submit a copy of the applicant's current business license; or
(d) post a bond as specified by Section 
32B-5-204
.
(6) Notwithstanding Subsection 
32B-5-303
(3), the department may approve an
additional location in or on the licensed premises of an on-premise banquet licensee from
which the on-premise banquet licensee may store, sell, offer for sale, furnish, or allow the
consumption of an alcoholic product that is not included in its original application only:
(a) upon proper application by an on-premise banquet licensee; and
(b) in accordance with guidelines approved by the commission.
Section 29. 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, convention center,
performing arts facility, arena, or restaurant venue that is the basis for the on-premise banquet
license.
(3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
shall provide the department with advance notice of a scheduled banquet in accordance with
rules made by the commission.
(b) Any of the following may conduct a random inspection of a banquet:
(i) an authorized representative of the commission or the department; or
(ii) a law enforcement officer.
(4) (a) An on-premise banquet licensee is not subject to Subsection 
32B-5-302
(1), but
shall make and maintain the records described in Subsection 
32B-5-302
(2) and the records the
commission or department requires.
(b) Section 
32B-1-205
 applies to a record required to be made or maintained in
accordance with this Subsection (4).
(5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the
location of the banquet.
(b) [
Except as provided in Subsection 
32B-5-307
(4),
] 
Notwithstanding Section
32B-5-307
 and except as otherwise provided in this title:
(i)
 [
a host of a banquet, a patron, or
] a person 
at a banquet
 other than the on-premise
banquet licensee or staff of the on-premise banquet licensee, may not remove an alcoholic
product from the premises of the banquet[
.
]
; and
[
(c) Notwithstanding Subsections 
32B-5-307
(3) and (5) and except as provided in
Subsection 
32B-5-307
(4),
]
(ii)
 a patron at a banquet may not bring an alcoholic product into or onto[
, or remove
an alcoholic product from,
] the premises of [
a
] 
the
 banquet.
(6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at
the banquet following the conclusion of the banquet.
(b) At the conclusion of a banquet, an on-premise banquet licensee shall:
(i) destroy an opened and unused alcoholic product that is not saleable, under
conditions 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:
(a) may provide room service in portions described in Section 
32B-5-304
;
(b) may not sell, offer for sale, or furnish an alcoholic product at a banquet or in
connection with room service any day during a period that:
(i) begins at 1 a.m.; and
(ii) ends at 9:59 a.m.; and
(c) notwithstanding Section 
32B-5-305
, may provide as room service one alcoholic
product free of charge per guest reservation, per guest room, if the alcoholic product:
(i) is not a spirituous liquor; and
(ii) is in an unopened container not to exceed 750 milliliters.
(9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
more than two alcoholic products of any kind at a time before the patron.
(b) A patron may not have more than one spirituous liquor drink at a time before the
patron.
(c) An individual portion of wine is considered to be one alcoholic product under
Subsection (9)(a).
(10) (a) An on-premise banquet licensee shall supervise and direct a person involved in
the sale, offer for sale, or furnishing of an alcoholic product.
(b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
shall complete an alcohol training and education seminar.
(11) A staff person of an on-premise banquet licensee shall remain at the banquet at all
times when an alcoholic product is sold, offered for sale, furnished, or consumed at the
banquet.
(12) (a) Room service of an alcoholic product to a guest room or privately owned
dwelling unit of a hotel or resort facility shall be provided in person by staff of an on-premise
banquet licensee only to an adult guest in the guest room or privately owned dwelling unit.
(b) An alcoholic product may not be left outside a guest room or privately owned
dwelling unit for retrieval by a guest or resident.
(13) An on-premise banquet licensee may not maintain a minibar.
Section 30. Section 
32B-6-702
 is amended to read:
32B-6-702.
Definitions.
As used in this part:
(1) "Commission-approved activity" means a leisure activity that:
(a) the commission approves by rule made in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act; and
(b) does not involve the use of a dangerous weapon.
(2) (a) "Recreational amenity" means:
(i) a billiard parlor;
(ii) a pool parlor;
(iii) a bowling facility;
(iv) a golf course;
(v) miniature golf;
(vi) a golf driving range;
(vii) a tennis club;
(viii) a sports facility that hosts professional sporting events and has a seating capacity
equal to or greater than [
6,500
] 
3,000
;
(ix) a concert venue that has a seating capacity equal to or greater than [
6,500
] 
3,000
;
(x) one of the following if owned by a government agency:
(A) a convention center;
(B) a fair facility;
(C) an equestrian park;
(D) a theater; or
(E) a concert venue;
(xi) an amusement park:
(A) with one or more permanent amusement rides; and
(B) located on at least 50 acres;
(xii) a ski resort;
(xiii) a venue for live entertainment if the venue:
(A) is not regularly open for more than five hours on any day;
(B) is operated so that food is available whenever beer is sold, offered for sale, or
furnished at the venue; and
(C) is operated so that no more than 15% of its total annual receipts are from the sale
of beer;
(xiv) concessions operated within the boundary of a park administered by the:
(A) Division of State Parks; or
(B) National Parks Service;
(xv) a facility or venue that is a recreational amenity for a person licensed under this
part before May 12, 2020;
(xvi) a venue for karaoke; or
(xvii) an enterprise developed around a commission-approved activity.
(b) "Recreational amenity" does not include an item described in Subsection (2)(a), if
the item is tangential to an enterprise or activity that is not included in Subsection (2)(a).
Section 31. Section 
32B-6-705
 is amended to read:
32B-6-705.
Specific licensing requirements for on-premise beer retailer license.
(1) To obtain an on-premise beer retailer license a person shall comply with Chapter 5,
Part 2, Retail Licensing Process, except that an on-premise beer retailer is required to carry
dramshop insurance coverage in accordance with Section 
32B-5-201
 only if the on-premise
beer retailer sells more than $5,000 of beer annually.
(2) (a) An on-premise beer retailer license expires on the last day of February each
year.
(b) To renew a person's on-premise beer retailer license, a person shall comply with the
renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than January
31.
(3) (a) The nonrefundable application fee for an on-premise beer retailer license is
$300.
(b) (i) 
(A)
 The initial license fee for an on-premise beer retailer license that is not a
tavern is $300.
(B) The department shall prorate the $300 initial license fee based on the number of
months out of a year the on-premise beer retailer licensee is licensed before the day on which
the on-premise beer retailer license expires.
(ii) 
(A)
 The initial license fee for an on-premise beer retailer license that is a tavern is
$1,500.
(B) The department shall prorate the $1,500 initial license fee based on the number of
months out of a year the on-premise beer retailer license is licensed before the day on which the
on-premise beer retailer license expires.
(c) (i) The renewal fee for an on-premise beer retailer license that is not a tavern is
$350.
(ii) The renewal fee for an on-premise beer retailer license that is a tavern is $1,250.
(4) The bond amount required for an on-premise beer retailer license is the penal sum
of $5,000.
(5) Notwithstanding the other provisions of this part, if an applicant is a state agency or
political subdivision of the state it is not required to:
(a) pay an application fee, initial license fee, or renewal fee;
(b) obtain the written consent of the local authority;
(c) submit a copy of the applicant's current business license; or
(d) post a bond as specified by Section 
32B-5-204
.
Section 32. Section 
32B-6-706
 is amended to read:
32B-6-706.
Specific operational requirements for on-premise beer retailer license.
(1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
Requirements, an on-premise beer retailer and staff of the on-premise beer retailer shall comply
with this section.
(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
(i) an on-premise beer retailer;
(ii) individual staff of an on-premise beer retailer; or
(iii) both an on-premise beer retailer and staff of the on-premise beer retailer.
(2) (a) An on-premise beer retailer is not subject to Subsection 
32B-5-302
(1), but shall
make and maintain the records described in Subsection 
32B-5-302
(2) and the records the
department requires.
(b) Section 
32B-1-205
 applies to a record required to be made or maintained in
accordance with this Subsection (2).
(3) Notwithstanding Section 
32B-5-303
, an on-premise beer retailer may not store or
sell liquor on its licensed premises.
(4) (a) An on-premise beer retailer may not sell, offer for sale, or furnish beer at the
on-premise beer retailer's licensed premises during a period that:
(i) begins at 1 a.m.; and
(ii) ends at 9:59 a.m.
(b) (i) Notwithstanding Subsection (4)(a), a tavern shall remain open for one hour after
the tavern ceases the sale and furnishing of beer during which time a patron of the tavern may
finish consuming a single serving of beer not exceeding 26 ounces.
(ii) A tavern is not required to remain open:
(A) after all patrons have vacated the premises; or
(B) during an emergency.
(5) Notwithstanding Section 
32B-5-308
, a minor may not be on the premises of a
tavern.
(6) (a) (i) An on-premise beer retailer may not purchase, acquire, possess for the
purpose of resale, or sell beer except beer that the on-premise beer retailer lawfully purchases
from:
(A) a beer wholesaler licensee; or
(B) a small brewer that manufactures the beer.
(ii) Violation of Subsection (6)(a)(i) is a class A misdemeanor.
(b) (i) If an on-premise beer retailer purchases beer under this Subsection (6) from a
beer wholesaler licensee, the on-premise beer retailer shall purchase beer only from a beer
wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area
in which the on-premise beer retailer is located, unless an alternate wholesaler is authorized by
the department to sell to the on-premise beer retailer as provided in Section 
32B-13-301
.
(ii) Violation of Subsection (6)(b)(i) is a class B misdemeanor.
(7) A tavern shall comply with Section 
32B-1-407
.
(8) An on-premise beer retailer that is not a tavern and owns or operates a recreational
amenity that is a golf course, may dispense or serve beer from a mobile dispensing unit while
the mobile dispensing unit is located in one or more designated areas.
Section 33. Section 
32B-6-804
 is amended to read:
32B-6-804.
Specific licensing requirements for reception center license.
(1) To obtain a reception center license a person shall comply with Chapter 5, Part 2,
Retail Licensing Process.
(2) (a) A reception center license expires on October 31 of each year.
(b) To renew a person's reception center license, a person shall comply with the
renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
September 30.
(3) (a) The nonrefundable application fee for a reception center license is $300.
(b) 
(i)
 The initial license fee for a reception center license is $750.
(ii) The department shall prorate the $750 initial license fee based on the number of
months out of a year the reception center licensee is licensed before the day on which the
reception center license expires.
(c) The renewal fee for a reception center license is $750.
(4) The bond amount required for a reception center license is the penal sum of
$10,000.
Section 34. 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 the
dining area and any waiting area to the nearest edge of the dispensing structure; or
(C) is physically separated from the dining area and any waiting area by a permanent
physical structure that complies with the provisions of Title 15A, State Construction and Fire
Codes Act, and, to the extent allowed under Title 15A, State Construction and Fire Codes Act,
measures at least 42 inches high, and at least 60 inches from the inside edge of the barrier to
the nearest edge of the dispensing structure.
(ii) "Dispensing area" does not include any area described in Subsection (1)(b)(i)(B)
that is less than 10 feet from an area where beer is dispensed, but from which a patron seated at
a table or counter cannot view the dispensing of beer.
(c) "Small beer-only restaurant licensee" means a beer-only restaurant licensee [
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.
(d) "Waiting area" includes a lobby. 
Section 35. Section 
32B-6-904
 is amended to read:
32B-6-904.
Specific licensing requirements for beer-only restaurant license.
(1) To obtain a beer-only restaurant license a person shall comply with Chapter 5, Part
2, Retail Licensing Process.
(2) (a) A beer-only restaurant license expires the last day of February of each year.
(b) To renew a person's beer-only restaurant license, a person shall comply with the
renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than January
31.
(3) (a) The nonrefundable application fee for a beer-only restaurant license is $330.
(b) 
(i)
 The initial license fee for a beer-only restaurant license is $825.
(ii) The department shall prorate the $825 initial license fee based on the number of
months out of a year the beer-only restaurant licensee is licensed before the day on which the
beer-only license expires.
(c) The renewal fee for a beer-only restaurant license is $605.
(4) The bond amount required for a beer-only restaurant license is the penal sum of
$5,000.
Section 36. Section 
32B-6-1004
 is amended to read:
32B-6-1004.
Specific licensing requirements for a hospitality amenity license.
(1) To obtain a hospitality amenity license a person shall comply with Chapter 5, Part
2, Retail Licensing Process.
(2) (a) A hospitality amenity license expires on October 31 of each year.
(b) To renew a person's hospitality amenity license, a person shall comply with the
renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
September 30.
(3) (a) The nonrefundable application fee for a hospitality amenity license is $330.
(b) 
(i)
 The initial license fee for a hospitality amenity license is $2,000.
(ii) The department shall prorate the $2,000 initial license fee based on the number of
months out of a year the hospitality amenity licensee is licensed before the day on which the
hospitality amenity license expires.
(c) The renewal fee for a hospitality amenity license is $1,000.
(4) The bond amount required for a hospitality amenity license is the penal sum of
$10,000.
(5) Notwithstanding Subsection 
32B-5-303
(3), the commission may approve an
additional location in or on the licensed premises of a hospitality amenity licensee from which
the hospitality amenity licensee may store, sell, offer for sale, furnish, or allow the
consumption of an alcoholic product that is not included in the person's original application
only:
(a) upon proper application by a hospitality amenity licensee; and
(b) in accordance with guidelines the commission approves.
Section 37. 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.
(b) A minor may not sell beer on the licensed premises of an off-premise beer retailer
unless:
(i) the sale is done under the supervision of a person 21 years old or older who is on the
licensed premises; and
(ii) the minor is at least 16 years old.
(5) An off-premise beer retailer may not sell, offer for sale, or furnish an alcoholic
product to:
(a) a minor;
(b) a person actually, apparently, or obviously intoxicated;
(c) a known interdicted person; or
(d) a known habitual drunkard.
(6) (a) Subject to the other provisions of this Subsection (6), an off-premise beer
retailer shall:
(i) display all beer accessible by and visible to a patron in no more than two locations
on the retail sales floor, each of which is:
(A) a display cabinet, cooler, aisle, floor display, or room where beer is the only
beverage displayed; and
(B) not adjacent to a display of nonalcoholic beverages, unless the location is a cooler
with a door from which the nonalcoholic beverages are not accessible, or the beer is separated
from the display of nonalcoholic beverages by a display of one or more nonbeverage products
or another physical divider; and
(ii) display a sign in the area described in Subsection (6)(a)(i) that:
(A) is prominent;
(B) is easily readable by a consumer;
(C) meets the requirements for format established by the commission by rule; and
(D) reads in print that is no smaller than .5 inches, bold type, "These beverages contain
alcohol. Please read the label carefully."
(b) Notwithstanding Subsection (6)(a), a nonalcoholic beer may be displayed with beer
if the nonalcoholic beer is labeled, packaged, or advertised as a nonalcoholic beer.
(c) The requirements of this Subsection (6) apply to beer notwithstanding that it is
labeled, packaged, or advertised as:
(i) a malt cooler; or
(ii) a beverage that may provide energy.
(d) A violation of this Subsection (6) is an infraction.
(e) (i) Except as provided in Subsection (6)(e)(ii), the provisions of Subsection (6)(a)(i)
apply on and after May 9, 2017.
(ii) For a beer retailer that operates two or more off-premise beer retailers, the
provisions of Subsection (6)(a)(i) apply on and after August 1, 2017.
(7) (a) Staff of an off-premise beer retailer who directly supervises the sale of beer or
who sells beer to a patron for consumption off the premises of the off-premise beer retailer
shall wear a unique identification badge:
(i) on the front of the staff's clothing;
(ii) visible above the waist;
(iii) bearing the staff's:
(A) first or last name;
(B) initials; or
(C) unique identification in letters or numbers; and
(iv) with the number or letters on the unique identification badge being sufficiently
large to be clearly visible and identifiable while engaging in or directly supervising the retail
sale of beer.
(b) An off-premise beer retailer shall make and maintain a record of each current staff's
unique identification badge assigned by the off-premise beer retailer that includes the staff's:
(i) full name;
(ii) address; and
(iii) (A) driver license number; or
(B) similar identification number.
(c) An off-premise beer retailer shall make available a record required to be made or
maintained under this Subsection (7) for immediate inspection by:
(i) a peace officer;
(ii) a representative of the local authority that issues the off-premise beer retailer
license; or
(iii) for an off-premise beer retailer state license, a representative of the commission or
department.
(d) A local authority may impose a fine of up to $250 against an off-premise beer
retailer that does not comply or require its staff to comply with this Subsection (7).
(8) (a) An off-premise beer retailer may sell, offer for sale, or furnish beer through a
drive through window.
(b) Subsection (8)(a) does not modify the display limitations and requirements
described in Subsection (6).
(9) An off-premise beer retailer may not on the licensed premises:
(a) engage in or permit any form of:
(i) gambling, as defined in Section 
76-10-1101
; or
(ii) fringe gambling, as defined in Section 
76-10-1101
;
(b) have any fringe gaming device, video gaming device, or gambling device or record
as defined in Section 
76-10-1101
; or
(c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
the risking of something of value for a return or for an outcome when the return or outcome is
based upon an element of chance, excluding the playing of an amusement device that confers
only an immediate and unrecorded right of replay not exchangeable for value.
(10) An off-premise beer retailer may not knowingly allow a person on the licensed
premises to, in violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter
37a, Utah Drug Paraphernalia Act:
(a) sell, distribute, possess, or use a controlled substance, as defined in Section
58-37-2
; or
(b) use, deliver, or possess, with the intent to deliver, drug paraphernalia, as defined in
Section 
58-37a-3
.
(11) An off-premise beer retailer may not sell, offer for sale, or furnish a beer that is
intended to be frozen and consumed in a manner other than as a beverage, including beer in the
form of a freeze pop, popsicle, ice cream, or sorbet.
Section 38. 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 one or more contiguous
parcels of real property owned or managed by the same person and on which a hotel is located.
(2) "Designated conveyance area" means route within a hotel:
(a) that connects one or more of the following:
(i) the premises of a sublicensed bar;
(ii) the premises of a sublicensed hospitality amenity area;
(iii) a sublicensed banquet premises; or
(iv) a guest's room;
(b) does not begin, end, or pass through a pool area or other recreation area, a
designated business center, or a sublicensed premises not described in Subsection (2)(a).
[
(2)
] 
(3)
 "Hotel" means one or more buildings that:
(a) comprise a hotel, as defined by the commission;
(b) are owned or managed by the same person or by a person who has a majority
interest in or can direct or exercise control over the management or policy of the person who
owns or manages any other building under the hotel license within the boundary of the hotel;
(c) primarily operate to provide lodging accommodations;
(d) have on-premise banquet space and provide on-premise banquet service within the
boundary of the hotel meeting the requirements of this title;
(e) have a restaurant or bar establishment within the boundary of the hotel meeting the
requirements of this title; and
(f) have at least 40 rooms as temporary sleeping accommodations for compensation.
Section 39. Section 
32B-8b-201
 is amended to read:
32B-8b-201.
Commission's power to issue a hotel license.
(1) Before a person as a hotel under a single license may store, sell, offer for sale,
furnish, or allow the consumption of an alcoholic product on sublicense premises, the person
shall first obtain a hotel license from the commission in accordance with this part.
(2) (a) The commission may issue to a person a hotel license to allow the storage, sale,
offer for sale, furnishing, and consumption of an alcoholic product in connection with a hotel
designated in the hotel license if the person operates at least three sublicenses under the hotel
license:
(i) one of which is an on-premise banquet license; and
(ii) one of which is:
(A) a full-service restaurant sublicense;
(B) a limited-service restaurant sublicense;
(C) a beer-only restaurant sublicense; or
(D) a bar establishment sublicense.
(b) A hotel license shall:
(i) consist of:
(A) a general hotel license; and
(B) three or more sublicenses meeting the requirements of Subsection (2)(a); and
(ii) designate the boundary of the hotel [
and
]
,
 sublicenses[
.
]
, and each designated
conveyance area.
(c) This chapter does not prohibit an alcoholic product on the boundary of the hotel to
the extent otherwise permitted by this title.
(3) The commission may not issue a total number of hotel licenses that at any time
totals more than 80.
Section 40. Section 
32B-8b-202
 is amended to read:
32B-8b-202.
Specific licensing requirements for hotel license.
(1) To obtain a hotel license, in addition to complying with Chapter 5, Part 2, Retail
Licensing Process, a person shall submit with the person's written application:
(a) evidence:
(i) of proximity of each building under the hotel license to any community location;
(ii) that each proposed sublicensed premises is entirely within the boundary of the
hotel; and
(iii) that each building designated in the application as a building under the hotel
license qualifies to be under the hotel license; [
and
]
(b) a description and boundary map of the hotel[
.
]
;
(c) a description, floor plan, and boundary map of each proposed designated
conveyance area; and
(d) a signed consent form stating that the hotel licensee will permit any authorized
representative of the commission or department, or any law enforcement officer, to have an
unrestricted right to enter any proposed designated conveyance area.
(2) (a) A hotel license expires on October 31 of each year.
(b) To renew a person's hotel license, the person shall comply with the requirements of
Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
(3) (a) The nonrefundable application fee for a hotel license is $500.
(b) The initial license fee for a hotel license is calculated as follows:
(i) if three sublicenses are being applied for under the hotel license, $5,000; or
(ii) if more than three sublicenses are being applied for under the hotel license, the sum
of:
(A) $5,000; and
(B) $2,000 for each sublicense in excess of three sublicenses for which the person is
applying.
(c) The renewal fee for a hotel license is $1,000 for each sublicense under the hotel
license.
(4) (a) The bond amount required for a hotel license is the penal sum of $10,000
,
covering each sublicense and each conveyance area under the hotel license
.
(b) A hotel licensee is not required to have a separate bond for each sublicense[
, except
that the aggregate of the bonds posted by the hotel licensee shall cover each sublicense under
the hotel license
] 
or each designated conveyance area
.
(5) The commission may not issue a hotel license that includes a building under the
hotel license that does not meet the proximity requirements of Section 
32B-1-202
.
(6) In accordance with Subsection 
32B-8d-103
(4), a hotel licensee may request to add a
sublicense after the commission issues the hotel licensee's hotel license.
(7) (a) A hotel licensee may request to add a designated conveyance area after the
commission issues the hotel licensee's hotel license.
(b) If a hotel licensee seeks to add a designated conveyance area under Subsection
(7)(a), the hotel licensee shall submit to the department:
(i) the information and evidence described in Subsections (1)(a)(iii), (1)(c), and (1)(d);
and
(ii) if the hotel licensee is an entity, proper verification evidencing that the person who
signs the submission is authorized to sign on behalf of the entity.
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 sublicensee or person
otherwise operating under a sublicense shall comply with this section.
(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
(i) the hotel licensee;
(ii) individual staff of the hotel licensee;
(iii) a sublicensee or person otherwise operating under a sublicense of the hotel
licensee;
(iv) individual staff of a sublicensee or person otherwise operating under a sublicense
of the hotel licensee; or
(v) any combination of the persons listed in this Subsection (1)(b).
(2) (a) A hotel licensee may not sell, offer for sale, or furnish an alcoholic product
except:
(i) on sublicensed premises;
(ii) [
pursuant to
] 
under
 a permit issued under this title;
(iii) under a package agency agreement with the department, subject to Chapter 2, Part
6, Package Agency; or
(iv) through room service.
(b) A hotel licensee who sells, offers for sale, or furnishes an alcoholic product as
provided in Subsection (2)(a) shall sell, offer for sale, or furnish the alcoholic product:
(i) if on sublicensed premises, in accordance with the operational requirements
described in Section 
32B-8d-104
;
(ii) if under a permit issued under this title, in accordance with the operational
requirements under the provisions applicable to the permit;
(iii) if as a package agency, in accordance with the contract with the department and
Chapter 2, Part 6, Package Agency; and
(iv) if through room service, in accordance with Subsection [
(4)
] 
(5)
.
(c) Notwithstanding the other provisions of this Subsection (2) and except as provided
in Section 
32B-8d-104
, a hotel licensee may not permit a patron to carry an alcoholic product
off the premises of a sublicense in violation of Section 
32B-5-307
 [
or
]
,
 off an area designated
under a permit
, or off a designated conveyance area
.
(3) A hotel licensee shall supervise and direct a person involved in the sale, offer for
sale, or furnishing of an alcoholic product under a hotel license.
(4) (a) A hotel licensee shall:
(i) in accordance with commission rule, establish and maintain signage that clearly
identifies each designated conveyance area and conspicuously states that a patron may not take
an alcoholic beverage beyond the designated conveyance area except as otherwise provided in
this chapter;
(ii) ensure that an alcoholic beverage is not left unattended in a designated conveyance
area; and
(iii) ensure that each patron complies with the requirements of Subsection
32B-8b-104
(5)(b)(ii).
(b) In accordance with Subsection (2), a hotel licensee may not sell, offer for sale, or
furnish an alcoholic product in a designated conveyance area.
[
(4)
] 
(5)
 (a) [
Room
] 
Staff of the hotel licensee shall provide room
 service of an
alcoholic product to a lodging accommodation of a hotel licensee [
shall be provided
] in person
[
by staff of the 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.
[
(5)
] 
(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-8d-104
 is amended to read:
32B-8d-104.
General operational requirements for a sublicense.
(1) Except as provided in Subsections (2) through [
(3)
] 
(5)
, a person operating under a
sublicense is subject to the operational requirements under the provisions applicable to the
sublicense.
(2) Notwithstanding a requirement in the provisions applicable to the sublicense, a
person operating under the sublicense is not subject to a requirement that a certain percentage
of the gross receipts for the sublicense be from the sale of food, except to the extent that the
gross receipts for the sublicense are included in calculating the percentages under Subsections
32B-8-401
(3), [
32B-8b-301
(5)
] 
32B-8b-301
(6)
, and 
32B-8c-301
(3).
(3) Notwithstanding [
Section 
32B-5-307
:
] 
Sections 
32B-5-307
 and 
32B-6-605
,
 [
(a)
] a
patron may transport beer between the sublicensed premises of an arena licensee's
accompanying sublicenses, if the patron transports the beer from and to an area of each
sublicensed premises:
[
(i)
] 
(a)
 that is adjacent to the other; and
[
(ii)
] 
(b)
 where the consumption of beer is permitted[
; and
]
.
[
(b)
] 
(4) Notwithstanding Section 
32B-5-307
,
 staff of a sublicensee or person
otherwise operating under a sublicense of a hotel licensee or a resort licensee may transport an
alcoholic beverage from and to sublicensed premises of the hotel license or resort license, if:
[
(i)
] 
(a)
 the sublicensee is:
[
(A)
] 
(i)
 a full-service restaurant sublicensee;
[
(B)
] 
(ii)
 a limited-service restaurant sublicensee;
[
(C)
] 
(iii)
 a bar establishment sublicensee;
[
(D)
] 
(iv)
 a beer-only restaurant sublicensee; or
[
(E)
] 
(v)
 an on-premise beer retailer sublicensee;
[
(ii)
] 
(b)
 the individual staff carries the alcoholic beverage:
[
(A)
] 
(i)
 from the sublicensed premises of a sublicensee described in Subsection
[
(3)(b)(i)
] 
(4)(a)
;
[
(B)
] 
(ii)
 briefly through an unlicensed area or briefly through sublicensed premises on
which the type of alcoholic beverage that the individual staff carries is permitted; and
[
(C)
] 
(iii)
 to the sublicensed premises of a sublicensee described in Subsection
[
(3)(b)(i)
] 
(4)(a)
; and
[
(iii)
] 
(c)
 the individual staff at all times stays within:
[
(A)
] 
(i)
 the boundary of the hotel; or
[
(B)
] 
(ii)
 the boundary of the resort building.
[
(4)
] 
(5) (a) Notwithstanding Section 
32B-5-307
, 
32B-6-605
, or 
32B-6-1005
, a patron
may transport an alcoholic beverage between any of the following locations, if the patron
lawfully obtained the alcoholic beverage on the premises of a sublicensee described in
Subsections (5)(a)(i) through (iv) and complies with Subsection (5)(b):
(i) a bar establishment sublicensee's sublicensed premises;
(ii) a hospitality amenity sublicensee's sublicensed premises;
(iii) an on-premise banquet sublicensee's sublicensed premises; and
(iv) a guest room.
(b) A patron may transport an alcoholic beverage in accordance with Subsection (5)(a)
only if:
(i) the patron travels exclusively within a designated conveyance area; and
(ii) the alcoholic beverage:
(A) is not in the alcoholic beverage's original container; and
(B) is in an opaque or solid color container that is readily identifiable as intended for
use in a designated conveyance area.
(6)
 Except as provided in Section 
32B-8-502
, for purposes of interpreting an
operational requirement imposed by the provisions applicable to a sublicense:
(a) a requirement imposed on a sublicensee or person operating under a sublicense
applies to the principal licensee; and
(b) a requirement imposed on staff of a sublicensee or person operating under a
sublicense applies to staff of the principal licensee.
Section 43. Section 
32B-10-202
 is amended to read:
32B-10-202.
Application for special use permit -- Qualifications.
(1) To obtain a special use permit, a person shall submit to the department:
(a) a written application in a form prescribed by the department;
(b) a nonrefundable application fee, if required by the relevant part of this chapter
applicable to the type of special use permit for which the person applies;
(c) an initial permit fee:
(i) if required by the relevant part of this chapter applicable to the type of special use
permit for which the person applies; and
(ii) that is refundable if a special use permit is not issued;
(d) a one-time special use permit fee if required by a section of this chapter:
(i) applicable to the type of special use permit for which the person applies; and
(ii) that is refundable if a special use permit is not issued;
(e) a statement of the purpose for which the person applies for the special use permit;
(f) a description of the types of alcoholic product the person intends to use under
authority of the special use permit;
(g) written consent of the local authority;
(h) if required, a bond as provided in Section 
32B-10-205
;
(i) a floor plan of the immediate area within the premises in which the person proposes
that an alcoholic product will be used, mixed, stored, sold, or consumed if required by the
relevant part of this chapter applicable to the type of special use permit for which the person
applies;
(j) a signed consent form stating that the special use permittee will permit any
authorized representative of the commission, department, or any other law enforcement officer
to have unrestricted right to enter the special use permittee's premises;
(k) if the person is an entity, proper verification evidencing that a person who signs the
application is authorized to sign on behalf of the entity; and
(l) any other information the commission or department may require.
(2) (a) The commission may issue a special use permit only to a person who qualifies
as follows:
(i) the commission may issue a religious wine use permit to a religious organization;
(ii) the commission may issue an industrial or manufacturing use permit to a person
engaged in an industrial or manufacturing pursuit;
(iii) the commission may issue a scientific or educational use permit to a person
engaged in a scientific or educational pursuit; and
(iv) the commission may issue a public service permit to
:
(A)
 an operator of an airline, railroad, or other public conveyance[
.
]
; or
(B) an entity with authorization from an international airport to establish and operate a
hospitality room at the international airport.
(b) The commission may not issue a special use permit to a person who is disqualified
under Section 
32B-1-304
.
(c) If a person to whom a special use permit is issued no longer possesses the
qualifications required by this title for obtaining that special use permit, the commission may
suspend or revoke that special use permit.
Section 44. Section 
32B-10-303
 is amended to read:
32B-10-303.
Specific application and renewal requirements for public service
permit.
(1) To obtain a public service permit, in addition to complying with Section
32B-10-202
, a person shall submit to the department:
(a) a statement of the total of regularly numbered flights, trains, buses, boats, or other
types of public conveyance for which the person plans to use the special use permit;
(b) a floor plan of any room or facility in which the person plans to establish a
hospitality room; and
(c) evidence of proximity of a proposed hospitality room to
:
(i)
 the arrival and departure area used by a person traveling on the person's airline,
railroad, bus, boat, or other public conveyance[
.
]
; or
(ii) if the applicant is a person described in Subsection 
32B-10-202
(2)(a)(iv)(B), the
arrival and departure area of another person's airline.
(2) (a) The nonrefundable application fee for a public service permit is $75.
(b) The initial permit fee for a public service permit is $250.
(c) The bond amount required for a public service permittee is the penal sum of $1,000.
(3) (a) To renew a public service permit, a person shall comply with Section
32B-10-203
.
(b) The renewal fee for a public service permit is $30 for each regularly numbered
passenger airplane flight, passenger train, bus, boat, or any other regularly scheduled public
conveyance upon which an alcoholic product is sold, offered for sale, or furnished.
Section 45. Section 
32B-10-304
 is amended to read:
32B-10-304.
Specific operational requirements for a public service permit.
(1) (a) In addition to complying with Section 
32B-10-206
, a public service permittee
and staff of the public service permittee shall comply with this section.
(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
(i) a public service permittee;
(ii) individual staff of a public service permittee; or
(iii) both a public service permittee and staff of the public service permittee.
(2) (a) A public service permittee 
described in Subsection 
32B-10-202
(2)(a)(iv)(A)
whose public conveyances operate on an interstate basis may do the following:
(i) purchase an alcoholic product outside of the state;
(ii) bring an alcoholic product purchased outside of the state into the state; and
(iii) sell, offer for sale, and furnish an alcoholic product purchased outside of the state
to a passenger traveling on the public service permittee's public conveyance for consumption
while en route on the public conveyance.
(b) A public service permittee 
described in Subsection 
32B-10-202
(2)(a)(iv)(A)
 whose
public conveyance operates solely within the state[
, to
]
:
(i) may
 sell, offer for sale, or furnish 
an alcoholic product
 to a passenger traveling on
the public service permittee's public conveyance for consumption while en route on the public
conveyance[
, shall purchase:
]
; and
(ii) shall purchase:
[
(i)
] 
(A)
 liquor from a state store or package agency; and
[
(ii)
] 
(B)
 beer from a beer wholesaler licensee.
(c) A public service permittee described in Subsection 
32B-10-202
(2)(a)(iv)(B):
(i) may sell, offer for sale, or furnish an alcoholic product to a patron at the public
service permittee's hospitality room; and
(ii) shall purchase:
(A) liquor from a state store or package agency; and
(B) beer from a beer wholesaler licensee.
(3) (a) A public service permittee may establish a hospitality room, if:
(i) 
(A)
 the room is located within a depot, terminal, or similar facility adjacent to and
servicing the public service permittee's airline, railroad, bus, boat, or other public conveyance;
or
(B) the room is located within a terminal at an international airport and servicing
another public service permittee's airline;
(ii) the room is completely enclosed and the interior is not visible to the public;
(iii) the sale, offer for sale, or furnishing of an alcoholic product is made only to a
person:
(A) then in transit using the public service permittee's airline, railroad, bus line, or
other public conveyance 
or, for a public service permittee described in Subsection (2), another
public service permittee's airline
; and
(B) holding a valid boarding pass or similar travel document issued by [
the
] 
a
 public
service permittee; and
(iv) (A) liquor is purchased from:
(I) a state store; or
(II) a package agency; and
(B) beer is purchased from a beer wholesaler licensee.
(b) (i) A public service permittee operating a hospitality room shall display in a
prominent place in the hospitality room, a sign in large letters that consists of text in the
following order:
(A) a header that reads: "WARNING";
(B) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
can cause birth defects and permanent brain damage for the child.";
(C) a statement in smaller font that reads: "Call the Utah Department of Health at
[insert most current toll-free number] with questions or for more information.";
(D) a header that reads: "WARNING"; and
(E) a warning statement that reads: "Driving under the influence of alcohol or drugs is
a serious crime that is prosecuted aggressively in Utah."
(ii) (A) The text described in Subsections (3)(b)(i)(A) through (C) shall be in a
different font style than the text described in Subsections (3)(b)(i)(D) and (E).
(B) The warning statements in the sign described in Subsection (3)(b)(i) shall be in the
same font size.
(iii) The Department of Health shall work with the commission and department to
facilitate consistency in the format of a sign required under this section.
(c) A hospitality room shall be operated in accordance with this chapter and rules
adopted by the commission.
Section 46. Section 
32B-15-201
 is amended to read:
32B-15-201.
Liability for injuries and damage resulting from distribution of
alcoholic products -- Prima facie evidence.
(1) (a) Except as provided in Subsections 
32B-15-202
(2) and (3), a person described in
Subsection (1)(b) is liable for:
(i) any and all injury and damage, except punitive damages to:
(A) a third person; or
(B) the heir, as defined in Section 
78B-3-105
, of the third person; or
(ii) the death of a third person.
(b) A person is liable under Subsection (1)(a) if:
(i) the person directly gives, sells, or otherwise provides an alcoholic product:
(A) to a person described in Subsection (1)(b)(ii); and
(B) as part of the commercial sale, storage, service, manufacture, distribution, or
consumption of an alcoholic product;
(ii) those actions cause the intoxication of:
(A) an individual under 21 years old;
(B) an individual who is apparently under the influence of an alcoholic product or
drug;
(C) an individual whom the person furnishing the alcoholic product knew or should
have known from the circumstances was under the influence of an alcoholic product or drug; or
(D) an individual who is a known interdicted person; and
(iii) the injury or death described in Subsection (1)(a) results from the intoxication of
the individual who is provided the alcoholic product.
(c) It is prima facie evidence that a person is liable under Subsection (1)(a) for an
injury or death that results from the intoxication of an individual described in Subsection
(1)(b)(ii)(B) or (C) if:
(i) the person directly gives, sells, or otherwise provides the individual the last
alcoholic product the individual consumes before the injury or death described in Subsection
(1)(b)(iii);
(ii) the individual consumes the alcoholic product at the location where the person
directly gives, sells, or otherwise provides the individual the alcoholic product;
(iii) the injury or death occurs within 30 minutes after the time at which the individual
leaves, and within a 10 mile radius of, the location where the person gives, sells, or otherwise
provides the individual the alcoholic product; and
(iv) the individual is charged with [
a criminal violation of Section 
41-6a-502
 for
driving under the influence of an alcoholic product in relation to the injury or death
] 
an offense
described in Subsection 
41-6a-501
(2)(a)
.
(2) (a) A person 21 years old or older who is described in Subsection (2)(b) is liable
for:
(i) any and all injury and damage, except punitive damages to:
(A) a third person; or
(B) the heir, as defined in Section 
78B-3-105
, of the third person; or
(ii) the death of the third person.
(b) A person is liable under Subsection (2)(a) if:
(i) the person directly gives or otherwise provides an alcoholic product to an individual
who the person knows or should have known is under 21 years old;
(ii) those actions caused the intoxication of the individual provided the alcoholic
product;
(iii) the injury or death described in Subsection (2)(a) results from the intoxication of
the individual who is provided the alcoholic product; and
(iv) the person is not liable under Subsection (1), because the person did not directly
give or provide the alcoholic product as part of the commercial sale, storage, service,
manufacture, distribution, or consumption of an alcoholic product.
(3) This section does not apply to a business licensed in accordance with Chapter 7,
Off-Premise Beer Retailer Act, to sell beer at retail only for off-premise consumption.
Section 47. Section 
41-6a-531
 is enacted to read:
 41-6a-531.
Access to DUI investigative reports.
(1) As used in this section:
(a) "Agent" means a person's attorney that has been formally engaged.
(b) "DUI investigative report" means all materials that a peace officer gathers as part of
investigating an offense described in Subsection 
41-6a-501
 including:
(i) the identity of witnesses and, if known, contact information;
(ii) witness statements;
(iii) photographs and videotapes;
(iv) diagrams;
(v) field notes;
(vi) test results; and
(vii) any Targeted Responsibility for Alcohol Connected Emergencies investigation
report.
(2) (a) Upon request, a law enforcement agency shall disclose an unredacted DUI
investigative report to:
(i) a person who suffers loss or injury related to the person's actions that gave rise to
the investigation; or
(ii) an agent, parent, or legal guardian of the person described in Subsection (2)(a)(i).
(b) A law enforcement agency responding to a request under Subsection (2)(a) may:
(i) withhold a portion of the DUI investigative report if disclosure would materially
prejudice an ongoing criminal investigation or criminal prosecution;
(ii) redact or withhold any privileged information;
(iii) redact an individual's phone number or address, if disclosure of the individual's
phone number or address may endanger an individual's physical safety; or
(iv) provide the DUI investigative report subject to an agreement that limits the
recipient's use of the DUI investigative report to use solely for the purpose of pursuing a civil
claim related to the incident.
(3) A law enforcement agency may charge a reasonable fee to cover the cost incurred
by disclosing a DUI investigative report in accordance with this section.
Section 48. Section 
53-28-101
 is enacted to read:
CHAPTER 28. PLACE OF LAST DRINK PROGRAM
 53-28-101.
Definitions.
(1) "Alcohol-related law enforcement officer" means the same as that term is defined in
Section 
32B-1-201
.
(2) "Alcohol-related traffic stop" means a traffic stop that results in an individual being
arrested for an offense described in Subsection 
41-6a-501
(2)(a) related to alcohol.
(3) "Alcoholic beverage" means the same as that term is defined in Section 
32B-1-102
.
(4) "Place of last drink" means the location where an individual obtains and consumes
the last alcoholic beverage before the individual is the subject of an alcohol-related traffic stop.
(5) "Retail licensee" means the same as that term is defined in Section 
32B-1-102
.
Section 49. Section 
53-28-102
 is enacted to read:
 53-28-102.
Place of last drink reporting requirements.
(1) The department shall establish a program in accordance with this chapter to:
(a) identify when an individual's place of last drink is a retail licensee; and
(b) efficiently share information with alcohol-related law enforcement officers about
each retail licensee that is an individual's place of last drink for the purpose of allowing the
alcohol-related law enforcement officers to investigate a possible violation of Section
32B-5-306
.
(2) In developing the program described in this section, the department shall coordinate
with and take input from the Department of Alcoholic Beverage Services created in Section
32B-2-203
.
(3) Before November 1, 2025, the department shall provide a written report to the
Criminal Justice and Law Enforcement Interim Committee that describes how the department
implemented the program, the extent to which the program accomplishes the objectives
described in Subsection (1), and any planned or recommended changes.
Section 50. Section 
59-15-101
 is amended to read:
59-15-101.
Tax basis -- Rate.
(1) (a) A tax is imposed at the rate specified in Subsection (1)(b) on all beer, as defined
in Section 
32B-1-102
, that is imported or manufactured for sale, use, or distribution in this
state.
[
(b) The tax described in Subsection (1)(a) shall be imposed at a rate of:
]
[
(i) $11 per 31-gallon barrel for beer imported or manufactured:
]
[
(A) before July 1, 2003; and
]
[
(B) for sale, use, or distribution in this state; and
]
[
(ii) $13.10 per 31-gallon barrel for beer imported or manufactured:
]
[
(A) on or after July 1, 2003; and
]
[
(B) for sale, use, or distribution in this state.
]
(b) The rate of the tax imposed under this Subsection (1) is:
(i) $13.10 per 31-gallon barrel for beer imported or manufactured before July 1, 2024;
(ii) $13.35 per 31-gallon barrel for beer imported or manufactured on or after July 1,
2024, and before July 1, 2025;
(iii) $13.60 per 31-gallon barrel for beer imported or manufactured on or after July 1,
2025, and before July 1, 2026;
(iv) $13.85 per 31-gallon barrel for beer imported or manufactured on or after July 1,
2026, and before July 1, 2027; and
(v) $14.10 per 31-gallon barrel for beer imported or manufactured on or after July 1,
2027.
(c) The tax imposed under this Subsection (1):
(i) shall be imposed at a proportionate rate for:
(A) any quantity of beer other than a 31-gallon barrel; or
(B) the fractional parts of a 31-gallon barrel; and
(ii) may not be imposed more than once on the same beer.
(2) A tax may not be imposed on beer:
(a) sold to the United States and its agencies; or
(b) (i) manufactured or imported for sale, use, or distribution outside the state; and
(ii) exported from the state.
Section 51. Section 
59-15-109
 is amended to read:
59-15-109.
Tax money to be paid to state treasurer.
(1) Except as provided in Subsection (2), taxes collected under this chapter shall be
paid by the commission to the state treasurer daily for deposit as follows:
(a) the greater of the following shall be deposited into the Alcoholic Beverage
Enforcement and Treatment Restricted Account created in Section 
32B-2-403
:
(i) an amount calculated by:
(A) determining an amount equal to 50% of the revenue collected for the fiscal year
two years preceding the fiscal year for which the deposit is made; and
(B) subtracting $30,000 from the amount determined under Subsection (1)(a)(i)(A); or
(ii) $4,350,000; and
(b) the revenue collected in excess of the amount deposited in accordance with
Subsection (1)(a) shall be deposited into the General Fund.
(2) The state treasurer shall annually deposit into the Alcoholic Beverage Enforcement
and Treatment Restricted Account created in Section 
32B-2-403
 an amount equal to the
amount of revenue generated in the current fiscal year by the portion of the tax imposed under
Section 
59-15-101
 that exceeds:
(a) $12.80 per 31-gallon barrel for beer imported or manufactured:
(i) on or after July 1, 2003; and
(ii) for sale, use, or distribution in this state; and
(b) a proportionate rate to the rate described in Subsection (2)(a) for:
(i) any quantity of beer other than a 31-gallon barrel; or
(ii) the fractional parts of a 31-gallon barrel.
(3) Beginning fiscal year 2024-25, the state treasurer shall annually deposit into the
Alcoholic Beverage Control Act Enforcement Fund created in Section 
32B-2-305
 an amount
equal to the amount of revenue generated in the current fiscal year by the portion of the tax
imposed under Section 
59-15-101
 that exceeds:
(a) $13.10 per 31-gallon barrel; and
(b) a proportionate rate to the rate described in Subsection (3)(a).
[
(3)
] 
(4)
 (a) The commission shall notify the entities described in Subsection [
(3)(b)
]
(4)(b)
 not later than the September 1 preceding the fiscal year of the deposit of:
(i) the amount of the proceeds of the beer excise tax collected in accordance with this
section for the fiscal year two years preceding the fiscal year of deposit; and
(ii) an amount equal to 50% of the amount listed in Subsection [
(3)(a)(i)
] 
(4)(b)(i)
.
(b) The notification required by Subsection [
(3)(a)
] 
(4)(a)
 shall be sent to:
(i) the Governor's Office of Planning and Budget; and
(ii) the Legislative Fiscal Analyst.
Section 52. Section 
63I-2-232
 is amended to read:
63I-2-232.
Repeal dates: Title 32B.
(1)
 Subsection 
32B-1-603.5
(7), regarding the Department of Alcoholic Beverage
Services' review of beer that is sold or distributed in the state, is repealed December 31, 2024.
(2) Subsection 
32B-2-205
(4), which creates a workgroup to make recommendations
regarding training and cash transaction receipts, is repealed January 1, 2025.
Section 53. 
Repealer.
This bill repeals:
Section 
32B-2-201.5
,
Commission subcommittee -- Chair's oversight
responsibilities.
Section 
32B-2-210
,
Alcoholic Beverage Services Advisory Board.
Section 54. 
Effective date.
This bill takes effect on May 1, 2024.