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S.B. 251
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DRAMSHOP MODIFICATIONS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Lyle W. Hillyard
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AN ACT RELATING TO ALCOHOLIC BEVERAGES; REQUIRING ALCOHOLIC
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BEVERAGE LICENSEES TO CARRY DRAMSHOP INSURANCE COVERAGE
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CONSISTENT WITH EXISTING CAPS; AMENDING THE DRAMSHOP LIABILITY LAW
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TO CLARIFY TYPES OF RECOVERY; EXCLUDING THE APPLICATION OF THE
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LIABILITY REFORM ACT; ADDRESSING THE CAP ON RECOVERY; AND MAKING
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TECHNICAL CHANGES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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32A-4-102, as last amended by Chapter 132, Laws of Utah 1991
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32A-4-202, as last amended by Chapter 132, Laws of Utah 1991
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32A-5-102, as last amended by Chapter 132, Laws of Utah 1991
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32A-10-202, as last amended by Chapter 282, Laws of Utah 1998
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ENACTS:
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32A-14a-101, Utah Code Annotated 1953
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32A-14a-103, Utah Code Annotated 1953
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RENUMBERS AND AMENDS:
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32A-14a-102, (Renumbered from 32A-14-101, as last amended by Chapters 94 and 375,
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Laws of Utah 1997)
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32A-14a-104, (Renumbered from 32A-14-102, as renumbered and amended by Chapter
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23, Laws of Utah 1990)
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
32A-4-102
is amended to read:
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32A-4-102. Application and renewal requirements.
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(1) A person seeking a restaurant liquor license under this chapter shall file a written
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application with the department, in a form prescribed by the department. It shall be accompanied
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by:
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(a) a nonrefundable $300 application fee;
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(b) an initial license fee of $300, which is refundable if a license is not granted;
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(c) written consent of the local authority;
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(d) a copy of the applicant's current business license;
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(e) evidence of proximity to any public or private school, church, public library, public
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playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
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Subsections
32A-4-101
(4), (5), and (6), the application shall be processed in accordance with
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those subsections;
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(f) a bond as specified by Section
32A-4-105
;
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(g) a floor plan of the restaurant, including consumption areas and the area where the
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applicant proposes to keep, store, and sell liquor;
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(h) evidence that the restaurant is carrying public liability insurance in an amount and form
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satisfactory to the department;
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(i) evidence that the restaurant is carrying dramshop insurance coverage of at least
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[$100,000] $500,000 per occurrence and [$300,000] $1,000,000 in the aggregate;
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(j) a signed consent form stating that the restaurant will permit any authorized
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representative of the commission, department, council, or any law enforcement officer unrestricted
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right to enter the restaurant;
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(k) in the case of a corporate applicant, proper verification evidencing that the person or
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persons signing the restaurant application are authorized to so act on the corporation's behalf; and
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(l) any other information the commission or department may require.
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(2) All restaurant liquor licenses expire on October 31 of each year. Persons desiring to
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renew their restaurant liquor license shall submit a renewal fee of $300 and a completed renewal
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application to the department no later than September 30. Failure to meet the renewal
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requirements shall result in an automatic forfeiture of the license effective on the date the existing
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license expires. Renewal applications shall be in a form as prescribed by the department.
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(3) If any restaurant liquor licensee does not immediately notify the department of any
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change in ownership of the restaurant, or in the case of a Utah corporate owner of any change in
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the corporate officers or directors, the commission may suspend or revoke that license.
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Section 2.
Section
32A-4-202
is amended to read:
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32A-4-202. Application and renewal requirements.
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(1) A person seeking an airport lounge liquor license under this part shall file a written
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application with the department, in a form prescribed by the department, accompanied by:
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(a) a nonrefundable $1,000 application fee;
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(b) an initial license fee of $1,000, which is refundable if a license is not granted;
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(c) written consent of the local and airport authority;
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(d) a copy of the applicant's current business license;
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(e) a bond as specified by Section
32A-4-205
;
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(f) a floor plan of the airport lounge, including consumption areas and the area where the
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applicant proposes to keep, store, and sell liquor;
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(g) a copy of the sign proposed to be used by the licensee on its premises to inform the
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public that alcoholic beverages are sold and consumed there;
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(h) evidence that the airport lounge is carrying public liability insurance in an amount and
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form satisfactory to the department;
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(i) evidence that the airport lounge is carrying dramshop insurance coverage of at least
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[$100,000] $500,000 per occurrence and [$300,000] $1,000,000 in the aggregate;
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(j) a signed consent form stating that the airport lounge will permit any authorized
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representative of the commission, department, council, or any law enforcement officer unrestricted
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right to enter the airport lounge;
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(k) in the case of a corporate applicant, proper verification evidencing that the person or
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persons signing the airport lounge application are authorized to so act on the corporation's behalf;
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and
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(l) any other information the commission or department may require.
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(2) All airport lounge liquor licenses expire on October 31 of each year. Persons desiring
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to renew their airport lounge liquor license shall submit a renewal fee of $1,000 and a completed
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renewal application to the department no later than September 30. Failure to meet the renewal
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requirements shall result in an automatic forfeiture of the license, effective on the date the existing
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license expires. Renewal applications shall be in a form as prescribed by the department.
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(3) If any airport liquor licensee does not immediately notify the department of any change
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in ownership of the licensee, or in the case of a Utah corporate owner of any change in the
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corporate officers or directors, the commission may suspend or revoke that license.
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Section 3.
Section
32A-5-102
is amended to read:
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32A-5-102. Application and renewal requirements.
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(1) A person seeking a private club liquor license under this chapter shall file a written
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application with the department, in the name of an officer or director of a corporation, in a form
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prescribed by the department. It shall be accompanied by:
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(a) a nonrefundable $1,000 application fee;
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(b) an initial license fee of $750, which is refundable if a license is not granted;
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(c) written consent of the local authority;
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(d) a copy of the applicant's current business license;
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(e) evidence that the applicant is a corporation or association organized under the Utah
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Nonprofit Corporation and Cooperative Association Act, and is in good standing;
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(f) evidence of proximity to any public or private school, church, public library, public
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playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of
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Subsections
32A-5-101
(5), (6), and (7), the application shall be processed in accordance with those
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subsections;
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(g) evidence that the applicant operates a club where a variety of food is prepared and
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served in connection with dining accommodations;
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(h) a bond as specified by Section
32A-5-106
;
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(i) a floor plan of the club premises, including consumption areas and the area where the
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applicant proposes to keep and store liquor;
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(j) evidence that the club is carrying public liability insurance in an amount and form
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satisfactory to the department;
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(k) evidence that the club is carrying dramshop insurance coverage of at least [$100,000]
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$500,000 per occurrence and [$300,000] $1,000,000 in the aggregate;
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(l) a copy of the club's articles, bylaws, house rules, and any amendments to those
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documents, which shall be kept on file with the department at all times;
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(m) a signed consent form stating that the club and its management will permit any
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authorized representative of the commission, department, council, or any law enforcement officer
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unrestricted right to enter the club premises;
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(n) a signed consent form authorizing the department to obtain Internal Revenue Service
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tax information on the club;
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(o) a signed consent form authorizing the department to obtain state and county real and
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personal property tax information on the club;
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(p) profit and loss statements for the previous fiscal year and pro forma statements for one
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year if the applicant has not previously operated; and
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(q) any other information, documents, and evidence the department may require by rule
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or policy to allow complete evaluation of the application.
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(2) (a) Each application shall be signed and verified by oath or affirmation by an executive
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officer or any person specifically authorized by the corporation or association to sign the
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application, to which shall be attached written evidence of said authority.
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(b) The applicant may attach to the application a verified copy of a letter of exemption
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from federal tax, issued by the United States Treasury Department, Internal Revenue Service,
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which the commission may consider as evidence of the applicant's nonprofit status. The
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commission may also consider the fact that the licensee has lost its tax exemption from federal tax
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as evidence that the licensee has ceased to operate as a nonprofit corporation.
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(3) (a) The commission may refuse to issue a license if it determines that any provisions
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of the club's articles, bylaws, house rules, or amendments to any of those documents are not
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reasonable and consistent with the declared nature and purpose of the applicant and the purposes
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of this chapter.
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(b) Club bylaws shall include provisions respecting the following:
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(i) standards of eligibility for members;
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(ii) limitation of members, consistent with the nature and purpose of the corporation or
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association;
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(iii) the period for which dues are paid, and the date upon which the period expires;
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(iv) provisions for dropping members for the nonpayment of dues or other cause; and
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(v) provisions for guests or visitors, if any, and for the issuance and use of visitor cards.
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(4) All private club liquor licenses expire on June 30 of each year. Persons desiring to
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renew their private club liquor license shall submit a renewal fee of $750 and a completed renewal
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application to the department no later than May 31. Failure to meet the renewal requirements shall
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result in an automatic forfeiture of the license effective on the date the existing license expires.
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Renewal applications shall be in a form as prescribed by the department.
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Section 4.
Section
32A-10-202
is amended to read:
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32A-10-202. Application and renewal requirements.
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(1) A person seeking an on-premise beer retailer license under this chapter shall file a
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written application with the department, in a form prescribed by the department. It shall be
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accompanied by:
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(a) a nonrefundable $300 application fee;
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(b) an initial license fee of $100, which is refundable if a license is not granted;
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(c) written consent of the local authority or a license to sell beer at retail for on-premise
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consumption granted by the local authority under Section
32A-10-101
;
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(d) a copy of the applicant's current business license;
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(e) for applications made on or after July 1, 1991, evidence of proximity to any public or
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private school, church, public library, public playground, or park, and if the proximity is within
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the 600 foot or 200 foot limitation of Subsections
32A-10-201
(3), (4), and (5), the application shall
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be processed in accordance with those subsections;
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(f) a bond as specified by Section
32A-10-205
;
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(g) a floor plan of the premises, including consumption areas and the area where the
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applicant proposes to keep, store, and sell beer;
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(h) evidence that the on-premise beer retailer licensee is carrying public liability insurance
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in an amount and form satisfactory to the department;
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(i) for those licensees that sell more than $5,000 of beer annually, evidence that the
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on-premise beer retailer licensee is carrying dramshop insurance coverage of at least [$100,000]
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$500,000 per occurrence and [$300,000] $1,000,000 in the aggregate;
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(j) a signed consent form stating that the on-premise beer retailer licensee will permit any
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authorized representative of the commission, department, council, or any peace officer unrestricted
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right to enter the licensee premises;
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(k) in the case of a corporate applicant, proper verification evidencing that the person or
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persons signing the on-premise beer retailer licensee application are authorized to so act on the
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corporation's behalf; and
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(l) any other information the department may require.
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(2) All on-premise beer retailer licenses expire on the last day of February of each year,
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except that all on-premise beer retailer licenses obtained before the last day of February 1991
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expire on the last day of February 1992. Persons desiring to renew their on-premise beer retailer
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license shall submit a renewal fee of $100 and a completed renewal application to the department
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no later than January 31. Failure to meet the renewal requirements shall result in an automatic
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forfeiture of the license, effective on the date the existing license expires. Renewal applications
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shall be in a form as prescribed by the department.
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(3) If any beer retailer licensee does not immediately notify the department of any change
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in ownership of the beer retailer, or in the case of a Utah corporate owner of any change in the
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officers or directors, the commission may suspend or revoke that license.
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(4) If the applicant is a county, municipality, or other political subdivision, it need not meet
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the requirements of Subsections (1)(a), (b), (c), (d), and (f).
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(5) Only one state on-premise beer retailer license is required for each building or resort
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facility owned or leased by the same applicant. Separate licenses are not required for each retail
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beer dispensing outlet located in the same building or on the same resort premises owned or
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operated by the same applicant.
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Section 5.
Section
32A-14a-101
is enacted to read:
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CHAPTER 14a. ALCOHOLIC BEVERAGE LIABILITY
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32A-14a-101. Definitions.
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As used in this chapter:
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(1) "Death of a third person" includes recovery for all damages, special and general,
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resulting from such death, except punitive damages.
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(2) (a) "Injury" includes injury in person, property, or means of support.
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(b) "Injury" also includes recovery for intangibles such as mental and emotional injuries,
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loss of affection, and companionship.
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Section 6.
Section
32A-14a-102
, which is renumbered from Section 32A-14-101 is
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renumbered and amended to read:
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[32A-14-101]. 32A-14a-102. Liability for injuries resulting from distribution
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of alcoholic beverages -- Causes of action -- Statute of limitations -- Employee protections.
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(1) (a) Except as provided in [Subsection (9)] Section
32A-14a-103
, a person described
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in Subsection (1)(b) is liable for:
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(i) [an] any and all injury [in person, property, or means of support] and damage, except
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punitive damages to:
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(A) any third person; or
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(B) the heir, as defined in Section
78-11-6.5
, of that third person; or
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(ii) for the death of a third person.
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(b) A person is liable under Subsection (1)(a) if:
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(i) the person directly gives, sells, or otherwise provides an alcoholic beverage:
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(A) to a person described in Subsection (1)(b)(ii); and
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(B) as part of the commercial sale, storage, service, manufacture, distribution, or
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consumption of alcoholic products;
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(ii) those actions cause the intoxication of:
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(A) any individual under the age of 21 years;
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(B) any individual who is apparently under the influence of intoxicating alcoholic products
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or drugs;
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(C) any individual whom the person furnishing the alcoholic beverage knew or should
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have known from the circumstances was under the influence of intoxicating alcoholic beverages
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or products or drugs; or
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(D) any individual who is a known interdicted person; and
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(iii) the injury or death described in Subsection (1)(a) results from the intoxication of the
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individual who is provided the alcoholic beverage.
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(2) (a) A person 21 years of age or older who is described in Subsection (2)(b) is liable for:
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(i) [an] any and all injury [in person, property, or means of support] and damage, except
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punitive damages to:
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(A) any third person; or
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(B) the heir, as defined in Section
78-11-6
.5, of that third person; or
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(ii) for the death of the third person.
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(b) A person is liable under Subsection (2)(a) if:
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(i) that person directly gives or otherwise provides an alcoholic beverage to an individual
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who the person knows or should have known is under the age of 21 years;
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(ii) those actions caused the intoxication of the individual provided the alcoholic beverage;
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(iii) the injury or death described in Subsection (2)(a) results from the intoxication of the
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individual who is provided the alcoholic beverage; and
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(iv) the person is not liable under Subsection (1), because the person did not directly give
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or provide the alcoholic beverage as part of the commercial sale, storage, service, manufacture,
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distribution, or consumption of alcoholic products.
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(3) Except for a violation of Subsection (2), an employer is liable for the actions of its
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employees in violation of this chapter.
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(4) A person who suffers an injury under Subsection (1) or (2) has a cause of action against
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the person who provided the alcoholic beverage in violation of Subsection (1) or (2).
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(5) If a person having rights or liabilities under this chapter dies, the rights or liabilities
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provided by this chapter survive to or against that person's estate.
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(6) The total amount [of damages] that may be awarded to any person pursuant to a cause
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of action for injury and damage under this chapter that arises after January 1, 1998, is limited to
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$500,000 and the aggregate amount which may be awarded to all persons injured as a result of one
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occurrence is limited to $1,000,000.
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(7) An action based upon a cause of action under this chapter shall be commenced within
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two years after the date of the injury.
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(8) (a) Nothing in this chapter precludes any cause of action or additional recovery against
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the person causing the injury.
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[(9) (a) An employer may not sanction or terminate the employment of an employee of a
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restaurant, airport lounge, private club, on-premise beer retailer, or any other establishment serving
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alcoholic beverages as a result of the employee having exercised the employee's independent
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judgment to refuse to sell alcoholic beverages to any person the employee considers to meet one
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or more of the conditions described in Subsection (1).]
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[(b) Any employer who terminates an employee or imposes sanctions on the employee
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contrary to this section is considered to have discriminated against that employee and is subject
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to the conditions and penalties set forth in Title 34A, Chapter 5, Utah Antidiscrimination Act.]
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(b) Any cause of action or additional recovery against the person causing the injury, which
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action is not brought under this chapter:
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(i) is exempt from the damage cap in Subsection (6); and
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(ii) (A) is exempt from the comparative negligence provisions of Sections
78-27-37
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through
78-27-43
; and
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(B) may not be used to reduce or impact an award of damages to persons recovering under
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a cause of action under this chapter.
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[(10)] (9) This section does not apply to a general food store or other establishment
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licensed under Chapter 10, Part 1, to sell beer at retail for off-premise consumption.
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Section 7.
Section
32A-14a-103
is enacted to read:
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32A-14a-103. Employee protected in exercising judgment.
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(1) An employer may not sanction or terminate the employment of an employee of a
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restaurant, airport lounge, private club, on-premise beer retailer, or any other establishment serving
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alcoholic beverages as a result of the employee having exercised the employee's independent
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judgment to refuse to sell alcoholic beverages to any person the employee considers to meet one
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or more of the conditions described in Subsection
32A-14a-102
(1).
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(2) Any employer who terminates an employee or imposes sanctions on the employee
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contrary to this section is considered to have discriminated against that employee and is subject
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to the conditions and penalties set forth in Title 34A, Chapter 5, Utah Antidiscrimination Act.
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Section 8.
Section
32A-14a-104
, which is renumbered from Section 32A-14-102 is
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renumbered and amended to read:
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[32A-14-102]. 32A-14a-104. Governmental immunity.
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No provision of this title creates any civil liability on the part of the state or its agencies
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and employees, the commission, the department, or any political subdivision arising out of their
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activities in regulating, controlling, authorizing, or otherwise being involved in the sale or other
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distribution of alcoholic beverages.
Legislative Review Note
as of 2-14-00 2:19 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.