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S.B. 153 Enrolled
ALCOHOLIC BEVERAGE AMENDMENTS
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: John L. Valentine
Ron Allen
This act modifies the Alcoholic Beverage Control Title including technical changes. The
act modifies definitions. The act modifies provisions related to the administration of the
title by the Alcoholic Beverage Control Commission and the Department of Alcoholic
Beverage Control. The act modifies provisions related to state stores. The act modifies
provisions related to package agencies. The act modifies provisions related to restaurant
liquor licenses and airport lounge liquor licenses. The act enacts provisions providing for
limited restaurant licenses. The act enacts provisions providing for on-premise banquet
licenses. The act modifies provisions related to private club licenses including the
creation of classes of private club licenses. The act modifies provisions related to special
use permits. The act amends provisions related to single event permits. The act modifies
provisions related to manufacturing licenses, local industry representative licenses, and
warehousing licenses. The act modifies provisions related to beer retail and wholesale
licenses and enacts provisions providing for temporary special event beer permits. The
act modifies provisions related to criminal offenses including restrictions on sales,
purchase, possession, and consumption of alcoholic beverages or products; restrictions on
operations; restrictions on advertising; restrictions on transportation and distribution of
alcoholic beverages or products; and restrictions on trade practices. This act repeals
provisions in the Sunset Act related to wine mark-ups. The act enacts the Nuisance
Licensees Act. This act appropriates for fiscal year 2002-03 only, $325,900 from the
Liquor Control Fund to the Department of Alcoholic Beverage Control and $62,000 from
the General Fund to the Driver License Division of the Department of Public Safety.
Subject to future budget constraints, as an ongoing appropriation, this act appropriates
for fiscal year 2003-04, $1,893,000 from the Liquor Control Fund to the Department of
Alcoholic Beverage Control and $811,000 from the General Fund to the Liquor Law
Enforcement Unit of the Department of Public Safety. This act contains a coordination
clause that includes, subject to future budget constraints, an ongoing appropriation of
$700,000 for fiscal year 2003-04 from the Liquor Control Fund.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
32A-1-102, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-1-104, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-1-105, as last amended by Chapter 161, Laws of Utah 2002
32A-1-107, as last amended by Chapter 282, Laws of Utah 2002
32A-1-109, as last amended by Chapter 20, Laws of Utah 1993
32A-1-111, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-1-113, as last amended by Chapter 1, Laws of Utah 2000
32A-1-116, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-1-119, as last amended by Chapter 79, Laws of Utah 1996
32A-1-122, as last amended by Chapter 24, Laws of Utah 1995
32A-1-123, as enacted by Chapter 132, Laws of Utah 1991
32A-1-401, as last amended by Chapter 8, Laws of Utah 2002, Fifth Special Session
32A-2-101, as last amended by Chapter 132, Laws of Utah 1991
32A-2-103, as last amended by Chapter 282, Laws of Utah 2002
32A-3-101, as last amended by Chapter 354, Laws of Utah 2001
32A-3-102, as last amended by Chapter 1, Laws of Utah 2000
32A-3-103, as last amended by Chapter 132, Laws of Utah 1991
32A-3-106, as last amended by Chapter 282, Laws of Utah 2002
32A-3-108, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-4-101, as last amended by Chapter 87, Laws of Utah 2002
32A-4-102, as last amended by Chapters 1 and 197, Laws of Utah 2000
32A-4-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-4-105, as last amended by Chapter 132, Laws of Utah 1991
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32A-4-106, as last amended by Chapter 282, Laws of Utah 2002
32A-4-201, as last amended by Chapter 19, Laws of Utah 1993
32A-4-202, as last amended by Chapters 1 and 197, Laws of Utah 2000
32A-4-203, as enacted by Chapter 23, Laws of Utah 1990
32A-4-206, as last amended by Chapter 282, Laws of Utah 2002
32A-5-101, as last amended by Chapter 132, Laws of Utah 1991
32A-5-102, as last amended by Chapters 1 and 197, Laws of Utah 2000
32A-5-103, as last amended by Chapter 30, Laws of Utah 1992
32A-5-104, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-5-107, as last amended by Chapter 282, Laws of Utah 2002
32A-6-102, as last amended by Chapter 132, Laws of Utah 1991
32A-6-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-6-105, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-6-201, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-6-202, as last amended by Chapter 282, Laws of Utah 2002
32A-6-301, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-6-401, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-6-501, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-7-101, as last amended by Chapter 88, Laws of Utah 1994
32A-7-102, as last amended by Chapter 1, Laws of Utah 2000
32A-7-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-7-104, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-7-106, as last amended by Chapter 127, Laws of Utah 1998
32A-8-101, as last amended by Chapters 77 and 88, Laws of Utah 1994
32A-8-102, as last amended by Chapter 1, Laws of Utah 2000
32A-8-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-8-106, as last amended by Chapter 1, Laws of Utah 2000
32A-8-501, as enacted by Chapter 20, Laws of Utah 1993
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32A-8-502, as last amended by Chapter 1, Laws of Utah 2000
32A-8-503, as enacted by Chapter 20, Laws of Utah 1993
32A-8-505, as last amended by Chapter 1, Laws of Utah 2000
32A-9-102, as last amended by Chapter 1, Laws of Utah 2000
32A-9-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-9-106, as last amended by Chapter 1, Laws of Utah 2000
32A-10-101, as last amended by Chapter 132, Laws of Utah 1991
32A-10-102, as last amended by Chapters 77 and 88, Laws of Utah 1994
32A-10-201, as last amended by Chapter 87, Laws of Utah 2002
32A-10-202, as last amended by Chapters 1 and 197, Laws of Utah 2000
32A-10-203, as enacted by Chapter 23, Laws of Utah 1990
32A-10-205, as enacted by Chapter 23, Laws of Utah 1990
32A-10-206, as last amended by Chapter 282, Laws of Utah 2002
32A-11-101, as last amended by Chapters 77 and 88, Laws of Utah 1994
32A-11-102, as last amended by Chapter 1, Laws of Utah 2000
32A-11-103, as last amended by Chapter 88, Laws of Utah 1994
32A-11-106, as last amended by Chapter 1, Laws of Utah 2000
32A-11a-106, as enacted by Chapter 328, Laws of Utah 1998
32A-12-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-12-105, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-12-201, as last amended by Chapter 20, Laws of Utah 1993
32A-12-203, as last amended by Chapter 20, Laws of Utah 1995
32A-12-204, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-12-207, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-12-209, as last amended by Chapter 365, Laws of Utah 1997
32A-12-210, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-12-212, as last amended by Chapter 132, Laws of Utah 1991
32A-12-213, as last amended by Chapter 141, Laws of Utah 1998
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32A-12-215, as last amended by Chapter 241, Laws of Utah 1991
32A-12-216, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-12-218, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-12-301, as last amended by Chapter 241, Laws of Utah 1991
32A-12-305, as last amended by Chapter 1, Laws of Utah 2000
32A-12-306, as last amended by Chapter 1, Laws of Utah 2000
32A-12-307, as last amended by Chapter 1, Laws of Utah 2000
32A-12-308, as last amended by Chapter 1, Laws of Utah 2000
32A-12-401, as last amended by Chapter 132, Laws of Utah 1991
32A-12-501, as last amended by Chapter 141, Laws of Utah 1998
32A-12-504, as last amended by Chapter 170, Laws of Utah 1996
32A-12-505, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-12-601, as enacted by Chapter 20, Laws of Utah 1993
32A-12-602, as enacted by Chapter 20, Laws of Utah 1993
32A-12-603, as last amended by Chapter 141, Laws of Utah 1998
32A-12-604, as last amended by Chapter 88, Laws of Utah 1994
32A-12-605, as last amended by Chapter 88, Laws of Utah 1994
32A-12-606, as enacted by Chapter 20, Laws of Utah 1993
ENACTS:
32A-4-301, Utah Code Annotated 1953
32A-4-302, Utah Code Annotated 1953
32A-4-303, Utah Code Annotated 1953
32A-4-304, Utah Code Annotated 1953
32A-4-305, Utah Code Annotated 1953
32A-4-306, Utah Code Annotated 1953
32A-4-307, Utah Code Annotated 1953
32A-4-401, Utah Code Annotated 1953
32A-4-402, Utah Code Annotated 1953
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32A-4-403, Utah Code Annotated 1953
32A-4-404, Utah Code Annotated 1953
32A-4-405, Utah Code Annotated 1953
32A-4-406, Utah Code Annotated 1953
32A-4-407, Utah Code Annotated 1953
32A-6-502, Utah Code Annotated 1953
32A-6-503, Utah Code Annotated 1953
32A-6-603, Utah Code Annotated 1953
32A-10-301, Utah Code Annotated 1953
32A-10-302, Utah Code Annotated 1953
32A-10-303, Utah Code Annotated 1953
32A-10-304, Utah Code Annotated 1953
32A-10-305, Utah Code Annotated 1953
32A-10-306, Utah Code Annotated 1953
32A-12-222, Utah Code Annotated 1953
32A-15a-101, Utah Code Annotated 1953
32A-15a-102, Utah Code Annotated 1953
32A-15a-103, Utah Code Annotated 1953
32A-15a-201, Utah Code Annotated 1953
32A-15a-202, Utah Code Annotated 1953
32A-15a-203, Utah Code Annotated 1953
63-55b-132, Utah Code Annotated 1953
REPEALS:
32A-1-501, as enacted by Chapter 20, Laws of Utah 1993
32A-1-502, as enacted by Chapter 20, Laws of Utah 1993
32A-1-503, as enacted by Chapter 20, Laws of Utah 1993
32A-1-504, as last amended by Chapter 1, Laws of Utah 2000
32A-4-107, as renumbered and amended by Chapter 23, Laws of Utah 1990
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32A-4-207, as enacted by Chapter 23, Laws of Utah 1990
32A-5-105, as last amended by Chapters 132 and 241, Laws of Utah 1991
32A-5-108, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-12-309, as last amended by Chapter 241, Laws of Utah 1991
32A-12-503, as renumbered and amended by Chapter 23, Laws of Utah 1990
63-55-232, as last amended by Chapter 175, Laws of Utah 1998
Be it enacted by the Legislature of the state of Utah:
Section 1.
Section
32A-1-102
is amended to read:
32A-1-102. Application of title.
[(1) Each license or permit issued by the former liquor control commission before July 1,
1985, shall continue in effect until either revoked by the commission for a violation of this title,
or voluntarily relinquished by the licensee or permittee.]
[(2) Each violation or offense committed before July 1, 1985, shall be governed by the
law, statutory and nonstatutory, existing when the violation of the title was committed. A
defense or limitation on punishment under this title shall be available to any defendant tried or
retried after July 1, 1985. If any of the elements of the offense occurred before July 1, 1985, the
offense is considered committed before July 1, 1985.]
[(3) The provisions of this] (1) This title [govern] governs alcoholic beverage control in
this state except where local authorities are expressly granted regulatory control by this title.
(2) Nothing in this title precludes local authorities from regulating the sale, storage,
service, or consumption of alcoholic beverages if [such] that regulation does not conflict with the
provisions of this title.
Section 2.
Section
32A-1-104
is amended to read:
32A-1-104. Policy.
The policies of the state are:
(1) The administration of this title shall be nonpartisan and free of partisan political
influence.
(2) Alcoholic beverage control shall be operated as a public business using sound
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management principles and practices. The business shall be governed by a commission and
operated by a department. The business shall function with the intent of servicing the public
demand for alcoholic beverages.
(3) The commission and department may not promote or encourage the sale or
consumption of alcoholic beverages.
(4) The commission shall conduct, license, and regulate the sale of alcoholic beverages
in a manner and at prices that:
(a) reasonably satisfy the public demand and protect the public interest, including the
rights of citizens who do not wish to be involved with alcoholic products[.]; and
(b) will promote the reduction of the harmful effects of over consumption of alcoholic
beverages by adults and consumption of alcoholic beverages by minors.
Section 3.
Section
32A-1-105
is amended to read:
32A-1-105. Definitions.
As used in this title:
(1) "Airport lounge" means a place of business licensed to sell alcoholic beverages, at
retail, for consumption on its premises located at an international airport with a United States
Customs office on its premises.
(2) "Alcoholic beverages" means "beer" and "liquor" as the terms are defined in this
section.
(3) (a) "Alcoholic products" means all products that contain at least 63/100 of 1% of
alcohol by volume or at least 1/2 of 1% by weight, and are obtained by fermentation, infusion,
decoction, brewing, distillation, or any other process that uses any liquid or combinations of
liquids, whether drinkable or not, to create alcohol in an amount greater than the amount
prescribed in this Subsection (3)(a).
(b) "Alcoholic products" does not include common extracts, vinegars, ciders, essences,
tinctures, food preparations, or over-the-counter drugs and medicines that otherwise come within
this definition.
(4) "Banquet" means an event:
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(a) for which there is a contract:
(i) between any person and a person listed in Subsection (4)(b); and
(ii) under which a person listed in Subsection (4)(b) is required to provide alcoholic
beverages at the event;
(b) held at one or more designated locations approved by the commission in or on the
premises of a:
(i) hotel;
(ii) resort facility;
(iii) sports center; or
(iv) convention center; and
(c) at which food and alcoholic beverages may be sold and served.
(5) "Bar" means a counter or similar structure:
(a) at which alcoholic beverages are:
(i) stored; or
(ii) dispensed; or
(b) from which alcoholic beverages are served.
[(4)] (6) (a) "Beer" means [all products that contain] any product that contains:
(i) 63/100 of 1% of alcohol by volume or 1/2 of 1% of alcohol by weight, but not more
than 4% of alcohol by volume or 3.2% by weight[,]; and [are]
(ii) is obtained by fermentation, infusion, or decoction of any malted grain.
(b) Beer may or may not contain hops or other vegetable products.
(c) Beer includes [products] a product that:
(i) contains alcohol in the percentages described in Subsection (6)(a); and
(ii) is referred to as:
(A) malt liquor[,];
(B) malted beverages[,]; or
(C) malt coolers.
[(5)] (7) (a) "Beer retailer" means any business establishment that is:
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(i) engaged, primarily or incidentally, in the retail sale [or distribution] of beer to public
patrons, whether for consumption on or off the establishment's premises[,]; and [that is]
(ii) licensed to sell beer by:
(A) the commission[, by];
(B) a local authority[,]; or
(C) both the commission and a local authority.
(b) (i) "On-premise beer retailer" means any beer retailer engaged, primarily or
incidentally, in the sale [or distribution] of beer to public patrons for consumption on the beer
retailer's premises.
(ii) "On-premise beer retailer" includes [taverns] a tavern.
[(c) (i) "Tavern" means any business establishment engaged primarily in the retail sale or
distribution of beer to public patrons for consumption on the establishment's premises, and that is
licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.]
[(ii) "Tavern" includes a beer bar, parlor, lounge, cabaret, and night club where the
revenue from the sale of beer exceeds the revenue of the sale of food, although food need not be
sold in the establishment.]
[(6)] (8) "Billboard" means any 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[, or other similar public display used to advertise, but does not include:].
[(a) displays on beer delivery vehicles if the displays do not overtly promote the
consumption of alcoholic beverages;]
[(b) displays in taverns and private clubs, if the displays are not visible to persons
off-premises;]
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[(c) point-of-sale displays, other than light devices, in retail establishments that sell beer
for off-premise consumption, if the displays are not visible to persons off-premises;]
[(d) private business signs on the premises of any business engaged primarily in the
distribution of beer;]
[(e) newspapers, magazines, circulars, programs, or other similar printed materials, if the
materials are not directed primarily to minors;]
[(f) menu boards in retail establishments that sell beer for on-premise consumption if the
menu boards also contain food items;]
[(g) handles on alcoholic beverage dispensing equipment that identify brands of products
being dispensed; and]
[(h) displays at the site of a temporary special event for which a single event liquor
permit has been obtained from the commission or a temporary special event beer permit has been
obtained from a local authority to inform attendees of the location where alcoholic beverages are
being dispensed.]
[(7)] (9) "Brewer" means any person engaged in manufacturing beer[, malt liquor, or
malted beverages].
(10) "Cash bar" means the service of alcoholic beverages:
(a) at:
(i) a banquet; or
(ii) a temporary event for which a permit is issued under this title; and
(b) if an attendee at the banquet or special event is charged for the alcoholic beverage.
[(8)] (11) "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, under a single contract,
and at a fixed charge in accordance with the bus company's tariff, for the purpose of giving the
group of persons the exclusive use of the bus and a driver to travel together to a specified
destination or destinations.
[(9)] (12) "Church" means a building:
(a) set apart [primarily] for the purpose of worship;
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(b) in which religious services are held;
(c) with which clergy is associated; and
[(d) the main body of which is kept for that use and not put to any other use inconsistent
with its primary purpose; and]
[(e)] (d) which is tax exempt under the laws of this state.
[(10)] (13) "Club" and "private club" means [any nonprofit corporation operating as a
social club, recreational, fraternal, or athletic association, or kindred association] any of the
following organized primarily for the benefit of its [stockholders or] members[.]:
(a) a social club;
(b) a recreational association;
(c) a fraternal association;
(d) an athletic association; or
(e) a kindred association.
[(11)] (14) "Commission" means the Alcoholic Beverage Control Commission.
[(12) "Cork-finished wine" means a container of wine stopped by a cork and finished by
foil, lead, or other substance by the manufacturer.]
(15) "Convention center" is as defined by rule by the commission.
[(13)] (16) "Department" means the Department of Alcoholic Beverage Control.
[(14)] (17) "Distressed merchandise" means any alcoholic beverage in the possession of
the department that is saleable, but for some reason is unappealing to the public.
[(15)] (18) "General food store" means any business establishment primarily engaged in
selling food and grocery supplies to public patrons for off-premise consumption.
[(16) "Governing body" means the board of not fewer than five shareholders or voting
members of a private club who have been elected and authorized to control or conduct the
business and affairs of that club.]
[(17)] (19) "Guest" means a person accompanied by an active member or visitor of a club
who enjoys only those privileges derived from the host for the duration of the visit to the club.
[(18)] (20) (a) "Heavy beer" means [all products that contain] any product that:
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(i) contains more than 4% alcohol by volume; and
(ii) is obtained by fermentation, infusion, or decoction of any malted grain.
(b) "Heavy beer" is considered "liquor" for the purposes of this title.
(21) "Hosted bar" means the service of alcoholic beverages:
(a) without charge; and
(b) at a:
(i) banquet; or
(ii) privately hosted event.
(22) "Hotel" is as defined by rule by the commission.
[(19)] (23) "Identification card" means the identification card issued under Title 53,
Chapter 3, Part 8, Identification Card Act.
[(20)] (24) "Interdicted person" means a person to whom the sale, gift, or provision of an
alcoholic beverage is prohibited by:
(a) law; or
(b) court order.
(25) "Intoxicated" means that to a degree that is unlawful under Section
76-9-701
a
person is under the influence of:
(a) an alcoholic beverage;
(b) a controlled substance;
(c) a substance having the property of releasing toxic vapors; or
(d) a combination of Subsections (25)(a) through (c).
[(21)] (26) "Licensee" means any person issued a license by the commission to sell,
manufacture, store, or allow consumption of alcoholic beverages on premises owned or
controlled by the person.
[(22)] (27) "Limousine" means any motor vehicle licensed by the state or a local
authority, other than a bus or taxicab:
(a) in which the driver and passengers are separated by a partition, glass, or other barrier;
and
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(b) that is provided by a company to an individual or individuals at a fixed charge in
accordance with the company's tariff for the purpose of giving the individual or individuals the
exclusive use of the limousine and a driver to travel to a specified destination or destinations.
[(23)] (28) (a) "Liquor" means alcohol, or any alcoholic, [spiritous] spirituous, vinous,
fermented, malt, or other liquid, or combination of liquids, a part of which is [spiritous]
spirituous, vinous, or fermented, and all other drinks, or drinkable liquids that contain more than
1/2 of 1% of alcohol by volume and is suitable to use for beverage purposes.
(b) "Liquor" does not include any beverage defined as a beer, malt liquor, or malted
beverage that has an alcohol content of less than 4% alcohol by volume.
[(24)] (29) "Local authority" means:
(a) the [county legislative] governing body of the county if the premises are located in an
unincorporated area of a county; or
(b) the governing body of the city or town if the premises are located in an incorporated
city or a town.
[(25)] (30) "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.
[(26)] (31) "Member" means a person who, after paying regular dues, has full privileges
of a club under this title.
[(27)] (32) "Minor" means any person under the age of 21 years.
[(28)] (33) "Outlet" means a location other than a state store or package agency where
alcoholic beverages are sold pursuant to a license issued by the commission.
[(29)] (34) "Package" means any container, bottle, vessel, or other receptacle containing
liquor.
[(30)] (35) "Package agency" means a retail liquor location operated under a contractual
agreement with the department, by a person other than the state, who is authorized by the
commission to sell package liquor for consumption off the premises of the agency.
[(31)] (36) "Package agent" means any person permitted by the commission to operate a
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package agency pursuant to a contractual agreement with the department to sell liquor from
premises that the package agent shall provide and maintain.
[(32)] (37) "Permittee" means any person issued a permit by the commission to perform
acts or exercise privileges as specifically granted in the permit.
[(33)] (38) "Person" means any individual, partnership, firm, corporation, limited
liability company, association, business trust, or other form of business enterprise, including a
receiver or trustee, and the plural as well as the singular number, unless the intent to give a more
limited meaning is disclosed by the context.
[(34)] (39) "Policy" means a statement of principles established by the commission to
guide the administration of this title and the management of the affairs of the department.
[(35)] (40) "Premises" means any building, enclosure, room, or equipment used in
connection with the sale, storage, service, manufacture, distribution, or consumption of alcoholic
products, unless otherwise defined in this title or in the rules adopted by the commission.
[(36)] (41) "Prescription" means a writing in legal form, signed by a physician or dentist
and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
[(37)] (42) (a) "Privately hosted event" or "private social function" means a specific
social, business, or recreational event for which an entire room, area, or hall has been leased or
rented, in advance by an identified group, and the event or function is limited in attendance to
people who have been specifically designated and their guests.
(b) "Privately hosted event" and "private social function" does not include events or
functions to which the general public is invited, whether for an admission fee or not.
[(38)] (43) "Proof of age" means:
(a) an identification card;
(b) an identification that:
(i) is substantially similar to an identification card;
(ii) is issued in accordance with the laws of a state other than Utah in which the
identification is issued;
(iii) includes date of birth; and
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(iv) has a picture affixed;
(c) a valid driver license certificate that:
(i) includes date of birth;
(ii) has a picture affixed; and
(iii) is issued:
(A) under Title 53, Chapter 3, Uniform Driver License Act; or
(B) in accordance with the laws of the state in which it is issued;
(d) a military identification card that:
(i) includes date of birth; and
(ii) has a picture affixed; or
(e) a valid passport.
[(39)] (44) (a) "Public building" means any building or permanent structure owned or
leased by the state, a county, or local government entity that is used for:
(i) public education;
(ii) transacting public business; or
(iii) regularly conducting government activities.
(b) "Public building" does not mean or refer to any building owned by the state or a
county or local government entity when the building is used by anyone, in whole or in part, for
proprietary functions.
[(40)] (45) "Representative" means an individual who is compensated by salary,
commission, or any other means for representing and selling the alcoholic beverage products of a
manufacturer, supplier, or importer of liquor, wine, or heavy beer.
[(41)] (46) "Residence" means the person's principal place of abode within Utah.
(47) "Resort facility" is as defined by rule by the commission.
[(42)] (48) "Restaurant" means any business establishment:
(a) where a variety of foods is prepared and complete meals are served to the general
public;
(b) located on a premises having adequate culinary fixtures for food preparation and
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dining accommodations; and
(c) that is engaged primarily in serving meals to the general public.
[(43)] (49) "Retailer" means any person engaged in the sale or distribution of alcoholic
beverages to the consumer.
(50) "Room service" includes service of alcoholic beverages to a guest room of a:
(a) hotel; or
(b) resort facility.
[(44)] (51) (a) (i) "Rule" means a general statement adopted by the commission:
(A) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act; and
(B) (I) to guide the activities of those regulated or employed by the department[,];
(II) to implement or interpret this title[,]; or
(III) to describe the organization, procedure, or practice requirements of the department
in order to carry out the intent of the law and ensure its uniform application. [This definition]
(ii) "Rule" includes any amendment or repeal of a prior rule.
(b) "Rule" does not include a rule concerning only the internal management of the
department that does not affect private rights or procedures available to the public, including
intradepartmental memoranda.
[(45)] (52) (a) "Sample" includes:
(i) a department [samples] sample; and
(ii) an industry representative [samples; and] sample.
[(iii) department trade show samples.]
(b) "Department sample" means liquor, wine, and heavy beer that has been placed in the
possession of the department for testing, analysis, and sampling.
[(c) "Department trade show sample" means liquor, wine, and heavy beer that has been
placed in the possession of the department for use in a trade show conducted by the department.]
[(d)] (c) "Industry representative sample" means liquor, wine, and heavy beer that has
been placed in the possession of the department for testing, analysis, and sampling by local
industry representatives on the premises of the department to educate themselves of the quality
- 17 -
and characteristics of the product.
[(e) "Retail licensee wine tasting" means cork-finished wine checked out under the
procedures provided in Section
32A-12-603
:]
[(i) to a local industry representative holding a license described in Section
32A-8-501
;]
[(ii) to conduct the tasting of cork-finished wines to a retail licensee licensed to sell wine
at retail for consumption on its premises; and]
[(iii) for the purpose of disseminating information and educating the retail licensees
described in Subsection (45)(e)(ii) as to the quality and characteristics of the cork-finished
wines.]
[(46)] (53) (a) "School" means any building used primarily for the general education of
minors.
(b) "School" does not include:
(i) a nursery [schools,] school;
(ii) an infant day care [centers,] center; or
(iii) a trade or technical [schools] school.
[(47)] (54) "Sell," "sale," and "to sell" means any transaction, exchange, or barter
whereby, for any consideration, an alcoholic beverage is either directly or indirectly transferred,
solicited, ordered, delivered for value, or by any means or under any pretext is promised or
obtained, whether done by a person as a principal, proprietor, or as an agent, servant, or
employee, unless otherwise defined in this title or the rules made by the commission.
[(48)] (55) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
beer and heavy beer per year.
(56) (a) "Spirituous liquor" means liquor that is distilled.
(b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
(57) "Sports center" is as defined by rule by the commission.
[(49)] (58) (a) "State label" means the official label designated by the commission
affixed to all liquor containers sold in the state.
- 18 -
(b) "State label" includes the department identification mark and inventory control
number.
[(50)] (59) (a) "State store" means a facility for the sale of package liquor:
(i) located on premises owned or leased by the state; and
(ii) operated by state employees.
(b) "State store" does not apply to any:
(i) licensee[,];
(ii) permittee[,]; or [to]
(iii) package [agencies] agency.
[(51)] (60) "Supplier" means any person selling alcoholic beverages to the department.
(61) (a) "Tavern" means any business establishment that is:
(i) engaged primarily in the retail sale of beer to public patrons for consumption on the
establishment's premises; and
(ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
(b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
revenue of the sale of food, although food need not be sold in the establishment:
(i) a beer bar;
(ii) a parlor;
(iii) a lounge;
(iv) a cabaret; or
(v) a nightclub.
[(52)] (62) "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.
[(53)] (63) "Unsaleable liquor merchandise" means merchandise that:
(a) is unsaleable because [it] the merchandise is unlabeled, leaky, damaged, difficult to
open, or partly filled[, or];
(b) is in a container:
- 19 -
(i) having faded labels or defective caps or corks[, or];
(ii) in which the contents are cloudy, spoiled, or chemically determined to be impure[,];
or
(iii) that contains:
(A) sediment[,]; or
(B) any foreign substance[,]; or
(c) is otherwise considered by the department as unfit for sale.
[(54)] (64) "Visitor" means [a person holding] an individual that in accordance with
Section
32A-5-107
holds limited privileges in a private club by virtue of a visitor card [purchased
from the club and authorized by a sponsoring member of the club].
[(55)] (65) "Warehouser" means any person, other than a licensed manufacturer, engaged
in the importation for sale, storage, or distribution of liquor regardless of amount.
[(56)] (66) "Wholesaler" means any person engaged in the importation for sale, or in the
sale of beer in wholesale or jobbing quantities to retailers, other than a small brewer selling beer
manufactured by that brewer.
[(57)] (67) (a) "Wine" means any alcoholic beverage obtained by the fermentation of the
natural sugar content of fruits, plants, honey, or milk, or any other like substance, whether or not
other ingredients are added.
(b) "Wine" is considered "liquor" for purposes of this title, except as otherwise provided
in this title.
Section 4.
Section
32A-1-107
is amended to read:
32A-1-107. Powers and duties of the commission.
(1) The commission shall:
(a) act as a general policymaking body on the subject of alcoholic product control;
(b) adopt and issue policies, directives, rules, and procedures;
(c) set policy by written rules that establish criteria and procedures for:
(i) granting, denying, suspending, or revoking permits, licenses, and package agencies;
(ii) controlling liquor merchandise inventory including:
- 20 -
(A) listing and delisting products;
(B) the procedures for testing new products;
(C) purchasing policy;
(D) turnover requirements for regularly coded products to be continued; and
(E) the disposition of discontinued, distressed, or unsaleable merchandise; and
(iii) determining the location of state stores, package agencies, and outlets; [and]
[(iv) department trade shows;]
(d) decide within the limits and under the conditions imposed by this title, the number
and location of state stores, package agencies, and outlets established in the state;
(e) issue, grant, deny, suspend, [or] revoke, or not review the following permits, licenses,
and package agencies for the purchase, sale, storage, service, manufacture, distribution, and
consumption of alcoholic products:
(i) package agencies;
(ii) restaurant licenses;
(iii) airport lounge licenses;
(iv) limited restaurant licenses;
(v) beginning on July 1, 2003 and ending June 30, 2005, on-premise banquet licenses;
[(iv)] (vi) private club licenses;
[(v)] (vii) on-premise beer retailer licenses;
(viii) temporary special event beer permits;
[(vi)] (ix) special use permits;
[(vii)] (x) single event permits;
[(viii)] (xi) manufacturing licenses;
[(ix)] (xii) liquor warehousing licenses; and
[(x)] (xiii) beer wholesaling licenses;
(f) fix prices at which liquors are sold that are the same at all state stores, package
agencies, and outlets;
(g) issue and distribute price lists showing the price to be paid by purchasers for each
- 21 -
class, variety, or brand of liquor kept for sale by the department;
(h) require the director to follow sound management principles and require periodic
reporting from the director to ensure that these principles are being followed and that policies
established by the commission are being observed;
(i) receive, consider, and act in a timely manner upon all reports, recommendations, and
matters submitted by the director to the commission, and do all things necessary to support the
department in properly performing its duties and responsibilities;
(j) obtain temporarily and for special purposes the services of experts and persons
engaged in the practice of a profession or who possess any needed skills, talents, or abilities if
considered expedient and if approved by the governor;
(k) prescribe the duties of departmental officials authorized to issue permits and licenses
[and to conduct trade shows] under this title;
(l) prescribe, consistent with this title, the fees payable for permits, licenses, and package
agencies issued under this title, or for anything done or permitted to be done under this title;
(m) prescribe the conduct, management, and equipment of any premises upon which
alcoholic beverages may be sold, consumed, served, or stored;
(n) make rules governing the credit terms of beer sales to retailers within the state; and
(o) require that each state store, package agency, licensee, and permittee, where required
in this title, display in a prominent place a sign in large letters stating: "Warning: Driving under
the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."
(2) The power of the commission to establish state stores, to create package agencies and
grant authority to operate package agencies, and to grant or deny licenses and permits is plenary,
except as otherwise provided by this title, and is not subject to review.
(3) The commission may appoint qualified hearing officers to conduct any suspension or
revocation hearings required by law.
(4) (a) In any case where the commission is given the power to suspend any license or
permit, it may impose a fine in addition to or in lieu of suspension. Fines imposed may not
exceed $25,000 in the aggregate for any single Notice of Agency Action.
- 22 -
(b) The commission shall promulgate, by rule, a schedule setting forth a range of fines
for each violation.
Section 5.
Section
32A-1-109
is amended to read:
32A-1-109. Powers and duties of the director.
Subject to the powers and responsibilities vested in the commission by this title the
director shall:
(1) prepare and propose to the commission general policies, directives, rules, and
procedures governing the administrative activities of the department and may submit other
recommendations to the commission as the director considers in the interest of its or the
department's business;
(2) within the general policies, directives, rules, and procedures of the commission,
provide day-to-day direction, coordination, and delegation of responsibilities in the
administrative activities of the department's business and promulgate internal department
policies, directives, rules, and procedures relating to department personnel matters, and the
day-to-day operation of the department;
(3) appoint or employ personnel as considered necessary in the administration of this title
and prescribe the conditions of their employment, define their respective duties and powers, fix
their remuneration in accordance with Title 67, Chapter 19, Utah State Personnel Management
Act, and designate those employees required to give bonds and specify the bond amounts;
(4) establish and secure adherence to a system of reports, controls, and performance in all
matters relating to personnel, security, department property management, and operation of
department offices, warehouses, state stores, package agencies, and licensees;
(5) within the policies, directives, rules, and procedures approved by the commission and
provisions of law, buy, import, keep for sale, sell and control the sale, storage, service,
transportation, and delivery of alcoholic products;
(6) prepare for commission approval:
(a) recommendations regarding the location, establishment, relocation, and closure of
state stores and package agencies;
- 23 -
(b) recommendations regarding the issuance, suspension, nonrenewal, and revocation of
licenses and permits;
(c) annual budgets, proposed legislation, and reports as required by law and sound
business principles;
(d) plans for reorganizing divisions of the department and their functions;
(e) manuals containing all commission and department policies, directives, rules, and
procedures;
(f) an inventory control system;
(g) any other reports and recommendations as may be requested by the commission;
(h) rules governing the credit terms of beer sales to beer retailer licensees;
(i) rules governing the calibration, maintenance, and regulation of calibrated metered
dispensing systems;
(j) rules governing the posting of a list of types and brand names of liquor being served
through calibrated metered dispensing systems;
(k) price lists issued and distributed showing the price to be paid for each class, variety,
or brand of liquor kept for sale at state stores, package agencies, and outlets;
(l) directives prescribing the books of account kept by the department and by state stores,
package agencies, and outlets;
(m) an official state label and the manner in which the label shall be affixed to every
package of liquor sold under this title; and
(n) a policy prescribing the manner of giving and serving notices required by this title or
rules made under this title; [and]
[(o) rules governing department trade shows;]
(7) make available through the department to any person, upon request, a copy of any
policy or directive promulgated by the director;
(8) adopt internal departmental policies, directives, rules, and procedures relating to
department personnel matters and the day-to-day operation of the department that are consistent
with those of the commission;
- 24 -
(9) keep a current copy of the manuals containing the rules and policies of the
department and commission available for public inspection; [and]
(10) (a) after consultation with the governor, determine whether alcoholic products
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) issue any necessary public announcements and directives with respect to the
determination described in Subsection (10)(a); and
[(10)] (11) perform other duties required by the commission and by law.
Section 6.
Section
32A-1-111
is amended to read:
32A-1-111. Department employees -- Requirements.
(1) (a) The commission may prescribe by policy, directive, or rule the qualifications of
persons employed by the department, subject to this title.
(b) A person may not obtain employment with the department [who] if that person has
been convicted of:
[(a) convicted of] (i) a felony under any federal or state law;
[(b) convicted of] (ii) any violation of any federal or state law or local ordinance
concerning the sale, manufacture, distribution, warehousing, adulteration, or transportation of
alcoholic beverages; [or]
[(c) convicted of] (iii) any crime involving moral turpitude[.]; or
(iv) on two or more occasions within the five years before the day on which the
employee is hired by the department, driving under the influence of alcohol, any drug, or the
combined influence of alcohol and any drug.
(2) [If any employee of the department is convicted of any offense as provided in
Subsection (1), the] The director may terminate [the] an employee or take other disciplinary
action consistent with Title 67, Chapter 19, [the] Utah State Personnel Management Act[.] if
after the day on which the employee is hired by the department, the employee of the department:
(a) is found to have been convicted of any offense described in Subsection (1)(b) before
being hired by the department; or
- 25 -
(b) on or after the day on which the employee is hired:
(i) is convicted of an offense described in Subsection (1)(b)(i), (ii), or (iii); or
(ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
influence of alcohol and any drug; and
(B) was convicted of driving under the influence of alcohol, any drug, or the combined
influence of alcohol and any drug within five years before the day on which the person is
convicted of the offense described in Subsection (2)(b)(ii)(A).
(3) The director may immediately suspend an employee of the department for the period
during which the criminal matter is being adjudicated if the employee:
(a) is arrested on a charge for an offense described in Subsection (1)(b)(i), (ii), or (iii); or
(b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
any drug, or the combined influence of alcohol and any drug; and
(ii) was convicted of driving under the influence of alcohol, any drug, or the combined
influence of alcohol and any drug within five years before the day on which the person is arrested
on a charge described in Subsection (3)(b)(i).
[(3)] (4) (a) A person who seeks employment with the department shall file with the
department an application under oath or affirmation in a form prescribed by the commission.
(b) The commission may not require information designating the color, race, or creed of
[the] an applicant.
(c) Upon receiving an application the department shall determine whether the applicant
is:
(i) of good moral character; and [is]
(ii) qualified for the position sought.
(d) The selection of applicants for employment or advancement with the department shall
be in accordance with Title 67, Chapter 19, [the] Utah State Personnel Management Act.
[(4) A package agent or licensee or any employee of a package agent or a licensee is]
(5) The following are not considered an employee of the department[.]:
(a) a package agent;
- 26 -
(b) a licensee;
(c) an employee of a package agent; or
(d) an employee of a licensee.
[(5) Minors] (6) A minor may not be employed by the department to:
(a) work in:
(i) any state liquor store; or
(ii) departmental warehouse[,]; or [to]
(b) engage in any activity involving the handling of alcoholic beverages.
Section 7.
Section
32A-1-113
is amended to read:
32A-1-113. Department expenditures and revenues -- Liquor Control Fund --
Exempt from Division of Finance -- Annual audits.
(1) (a) All money received by the department in the administration of this title, except as
otherwise provided, together with all property acquired, administered, possessed, or received by
the department, is the property of the state. Money received in the administration of this title
shall be paid to the department and transferred into the state treasury to the credit of the Liquor
Control Fund.
(b) All expenses, debts, and liabilities incurred by the department in connection with the
administration of this title shall be paid from the Liquor Control Fund.
(c) The fiscal officers of the department shall transfer annually from the Liquor Control
Fund to the General Fund a sum equal to the amount of net profit earned from the sale of liquor
since the preceding transfer of funds. The transfer shall be made within 90 days of the end of the
department's fiscal year on June 30.
(2) (a) Deposits made by the department shall be made to banks designated as state
depositories and reported to the state treasurer at the end of each day.
(b) Any member of the commission and any employee of the department is not
personally liable for any loss caused by the default or failure of depositories.
(c) All funds deposited in any bank or trust company are entitled to the same priority of
payment as other public funds of the state.
- 27 -
(3) All expenditures necessary for the administration of this title, including the payment
of all salaries, premiums, if any, on bonds of the commissioners, the director, and the department
staff in all cases where bonds are required, and all other expenditures incurred in establishing,
operating, and maintaining state stores and package agencies and in the administration of this
title, shall be paid by warrants drawn on the state treasurer paid out of the Liquor Control Fund.
(4) If the cash balance of the Liquor Control Fund is not adequate to cover the warrants
drawn against it by the state treasurer, the cash resources of the General Fund may be utilized to
the extent necessary. However, at no time may the fund equity of the Liquor Control Fund fall
below zero.
(5) (a) When any check issued in payment of any fees or costs authorized or required by
this title is returned to the department as dishonored[,]:
(i) the department may assess a service charge in an amount set by commission rule
against the person on whose behalf the check was tendered[.]; and
(ii) if the check that is returned to the department is from a licensee, permittee, or
package agent, it is grounds for:
(A) the suspension or revocation of the license or permit; or
(B) the suspension or termination of the operation of the package agency.
(b) The revocation of a license or permit under this Subsection (5) is grounds for the
forfeiture of the bond of the:
(i) licensee; or
(ii) permittee.
(c) The termination of the operation of a package agency under this Subsection (5) is
grounds for the forfeiture of the bond of the package agency.
(6) The laws that govern the Division of Finance and prescribe the general powers and
duties of the Division of Finance are not applicable to the Department of Alcoholic Beverage
Control in the purchase and sale of alcoholic products.
(7) The accounts of the department shall be audited annually by the state auditor or by
any other person, firm, or corporation the state auditor appoints. The audit report shall be made
- 28 -
to the state auditor, and copies submitted to members of the Legislature not later than January 1
following the close of the fiscal year for which the report is made.
Section 8.
Section
32A-1-116
is amended to read:
32A-1-116. Purchase of liquor.
(1) [Beginning July 1, 1991, the] The department may not purchase or stock alcoholic
beverages in containers smaller than 200 ml. except as otherwise allowed by the commission.
(2) (a) Each order for the purchase of liquor or any cancellation of an order:
(i) shall be executed in writing by the department; and
(ii) is not valid or binding unless [so] executed in writing.
(b) A [duplicate] copy of each order or cancellation shall be kept on file by the
department for at least three years.
Section 9.
Section
32A-1-119
is amended to read:
32A-1-119. Adjudicative proceedings -- Procedure.
(1) (a) The commission, director, and department may conduct adjudicative proceedings
to inquire into any matter necessary and proper for the administration of this title and rules
adopted under this title.
(b) The commission, director, and department shall comply with the procedures and
requirements of Title 63, Chapter 46b, Administrative Procedures Act, in their adjudicative
proceedings.
(c) Except where otherwise provided by law, all adjudicative proceedings shall be
conducted in accordance with Title 52, Chapter 4, Open and Public Meetings.
(d) All adjudicative proceedings concerning departmental personnel shall be conducted
in accordance with Title 67, Chapter 19, Utah State Personnel Management Act. All hearings
that are informational, fact gathering, and nonadversarial in nature shall be conducted in
accordance with rules, policies, and procedures promulgated by the commission, director, or
department.
(2) (a) Disciplinary proceedings shall be conducted under the authority of the
commission, which is responsible for rendering a final decision and order on any disciplinary
- 29 -
matter.
(b) (i) Nothing in this section precludes the commission from appointing necessary
officers, including hearing examiners, from within or without the department, to administer the
disciplinary hearing process.
(ii) Officers and examiners appointed by the commission may conduct hearings on behalf
of the commission and submit findings of fact, conclusions of law, and recommendations to the
commission.
(3) [When] (a) The department may initiate a proceeding described in Subsection (3)(b)
when the department [has on file] receives:
(i) a report from any government agency, peace officer, examiner, or investigator
alleging that a permittee or licensee or any [of its officers or employees] officer, employee, or
agent of a permittee or licensee has violated this title or the rules of the commission[, the];
(ii) a final adjudication of criminal liability against a permittee or licensee or any officer,
employee, or agent of a permittee or licensee based on an alleged violation of this title; or
(iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
Liability, against a permittee or licensee or any officer, employee, or agent of a permittee or
licensee based on an alleged violation of this title.
(b) The department may initiate disciplinary proceedings if the department receives an
item listed in Subsection (3)(a) to determine:
[(a)] (i) whether [or not] the permittee or licensee [is guilty of the violation] or any
officer, employee, or agent of the permittee or licensee violated this title or rules of the
commission; and
[(b)] (ii) if a violation is found [guilty], the [penalty] appropriate sanction to be imposed.
(c) For purposes of this Subsection (3), "final adjudication" means an adjudication for
which a final unappealable judgment or order has been issued.
(4) (a) [An] Unless waived by the respondent, an adjudicative proceeding shall be held:
(i) if required by law[, and in all cases];
(ii) before revoking or suspending any permit or license [or permit] issued under this
- 30 -
title[, unless waived by the respondent]; or
(iii) before imposing a fine against:
(A) a permittee;
(B) a licensee; or
(C) any officer, employee, or agent of a permittee or licensee.
(b) Inexcusable failure of a respondent to appear at a scheduled evidentiary hearing after
receiving proper notice is an admission of the charged violation.
(c) The validity of any hearing is not affected by the failure of any person to attend or
remain in attendance.
(d) All evidentiary hearings shall be presided over by the commission or an appointed
hearing examiner.
(e) A hearing may be closed only after the commission or hearing examiner makes a
written finding that the public interest in an open hearing is clearly outweighed by factors
enumerated in the closure order.
(f) The commission or its hearing examiner may administer oaths or affirmations, take
evidence, take depositions within or without this state, require by subpoena from any place
within this state the testimony of any person at a hearing, and the production of any books,
records, papers, contracts, agreements, documents, or other evidence considered relevant to the
inquiry.
(i) Persons subpoenaed shall testify and produce any books, papers, documents, or
tangible things as required in the subpoena.
(ii) Any witness subpoenaed or called to testify or produce evidence who claims a
privilege against self-incrimination may not be compelled to testify, but the commission or the
hearing examiner shall file a written report with the county attorney or district attorney in the
jurisdiction where the privilege was claimed or where the witness resides setting forth the
circumstance of the claimed privilege.
(iii) A person is not excused from obeying a subpoena without just cause. Any district
court within the judicial district in which a person alleged to be guilty of willful contempt of
- 31 -
court or refusal to obey a subpoena is found or resides, upon application by the party issuing the
subpoena, may issue an order requiring the person to appear before the issuing party, and to
produce documentary evidence if so ordered, or to give evidence regarding the matter in
question. Failure to obey an order of the court may be punished by the court as contempt.
(g) In all cases heard by a hearing examiner, the hearing examiner shall prepare a report
to the commission. The report may not recommend a penalty more severe than that initially
sought by the department in the notice of violation. A copy of the report shall be served upon the
respective parties, and the respondent shall be given reasonable opportunity to file any written
objections to the report before final commission action.
(h) In all cases heard by the commission, it shall issue its final decision and order.
(5) (a) The commission shall render a decision and issue a written order on any
disciplinary action, and serve a copy on all parties.
(b) Any order of the commission is considered final on the date [it] the order becomes
effective.
(c) If the commission is satisfied that a permittee [or], licensee, or any officer, employee,
or agent of a permittee or licensee has committed a violation of this title[,] or the commission's
rules, [it] in accordance with Title 63, Chapter 46b, Administrative Procedures Act, the
commission may [take emergency action suspending or revoking]:
(i) suspend or revoke the permit or the license [according to the procedures and
requirements of Title 63, Chapter 46b, Administrative Procedures Act, and];
(ii) impose a fine against:
(A) the permittee;
(B) the licensee; or
(C) any officer, employee, or agent of a permittee or licensee;
(iii) assess the administrative costs of any hearing to the permittee or the licensee[.]; or
(iv) any combination of Subsections (5)(c)(i) through (iii).
(d) (i) A fine imposed in accordance with this Subsection (5) may not exceed $25,000 in
the aggregate for any single notice of agency action.
- 32 -
(ii) The commission shall, by rule, establish a schedule of fines specifying the range of
fines for each violation of this title or commission rules.
(e) (i) If a permit or license is suspended under this Subsection (5), a sign provided by
the department shall be prominently posted:
(A) during the suspension;
(B) by the permittee or licensee; and
(C) at the entrance of the premises of the permittee or licensee.
(ii) The sign required by this Subsection (5)(e) shall:
(A) read "The Utah Alcoholic Beverage Control Commission has suspended the
alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be sold,
served, furnished, or consumed on these premises during the period of suspension."; and
(B) include the dates of the suspension period.
(iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required to
be posted under this Subsection (5)(e) during the suspension period.
[(d)] (f) If the permit or license is revoked, the commission may order the revocation of
any compliance bond posted by the permittee or licensee.
[(e)] (g) Any permittee or licensee whose permit or license is revoked may not reapply
for a permit or license under this title for three years from the date the permit or license was
revoked.
[(f)] (h) All costs assessed by the commission shall be transferred into the General Fund
in accordance with Section
32A-1-113
.
(6) (a) [The commission] In addition to any action taken against a permittee or licensee
under this section, the department may [also] initiate disciplinary [actions] action against
[employees] an officer, employee, or [agents] agent of [licensees] a permittee or licensee.
(b) If any officer, employee, or agent is found to have violated this title, the commission
may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
wholesaling, warehousing, or handling alcoholic beverages in the course of employment with any
permittee or licensee [licensed] under this title for a period determined by the commission.
- 33 -
[(7) If any manufacturer, supplier, or importer of liquor, wine, or heavy beer or their
employee, agent, or representative violates any provision of this title,]
(7) (a) The department may initiate a disciplinary action for an alleged violation of this
title or the rules of the commission against:
(i) a manufacturer, supplier, or importer of alcoholic beverages; or
(ii) an officer, employee, agent, or representative of a person listed in Subsection
(7)(a)(i).
(b) (i) If the commission makes the finding described in Subsection (7)(b)(ii), the
commission may, in addition to other penalties prescribed by this title, order:
(A) the removal of the manufacturer's, supplier's, or importer's products from the
department's sales list; and
(B) a suspension of the department's purchase of [those] the products described in
Subsection (7)(b)(i)(A) for a period determined by the commission [if].
(ii) The commission may take the action described in Subsection (7)(b)(i) if:
(A) any manufacturer, supplier, or importer of liquor, wine, or heavy beer or its
employee, agent, or representative violates any provision of this title; and
(B) the manufacturer, supplier, or importer:
(I) directly committed the violation[,]; or
(II) solicited, requested, commanded, encouraged, or intentionally aided another to
engage in the violation.
Section 10.
Section
32A-1-122
is amended to read:
32A-1-122. Liquor prices.
(1) Except as provided in Subsections (2) and (3), all liquor sold within the state shall be
marked up in an amount not less than [61%] 64.5% above the cost to the department[, excluding
federal excise taxes].
(2) All liquor sold to military installations in Utah shall be marked up in an amount not
less than 15% above the cost to the department[, excluding federal excise taxes].
(3) [All wine sold in Utah by] If a wine manufacturer producing less than 20,000 gallons
- 34 -
of wine in any calendar year, as verified by the department pursuant to federal or other verifiable
production reports, first applies to the department for a reduced markup, all wine sold in Utah by
the wine manufacturer shall be marked up in an amount not less than 30% above the cost to the
department[, excluding federal excise taxes, but only if the wine manufacturer first applies to the
department for the 30% markup].
(4) Nothing in this section prohibits the department from selling discontinued lines at a
discount.
Section 11.
Section
32A-1-123
is amended to read:
32A-1-123. Licensee compliance with other laws.
(1) Each applicant for a license and each licensee shall comply with all applicable federal
and state laws pertaining to payment of taxes and contributions to unemployment and insurance
funds to which it may be subject. [Failure to do so may result in the suspension or revocation of
the licensee's license.]
(2) The commission:
(a) may not issue a license to an applicant that violates this section; and
(b) may suspend, revoke, or not renew the license of any licensee who fails to comply
with this section.
Section 12.
Section
32A-1-401
is amended to read:
32A-1-401. Alcohol training and education -- Revocation or suspension of licenses.
(1) The commission may [revoke,] suspend, [withhold] revoke, or not renew the license
of any [new or renewing] licensee if any of the following persons, as defined in Section
62A-15-401
, fail to complete the seminar required in Section
62A-15-401
:
(a) a person who manages operations at the premises of the licensee;
(b) a person who supervises the serving of alcoholic beverages to a customer for
consumption on the premises of the licensee; or
(c) a person who serves alcoholic beverages to a customer for consumption on the
premises of the licensee.
(2) A city, town, or county in which an establishment conducts its business may [revoke,]
- 35 -
suspend, [withhold] revoke, or not renew the business license of the establishment if any person
described in Subsection (1) fails to complete the seminar required in Section
62A-15-401
.
Section 13.
Section
32A-2-101
is amended to read:
32A-2-101. Commission's power to establish state stores -- Limitations.
(1) (a) The commission may establish state stores in numbers and at places, owned or
leased by the department, it considers proper for the sale of liquor, by employees of the state, in
accordance with this title and the rules made under this title.
(b) Employees of state stores are considered employees of the department and shall meet
all qualification requirements for employment outlined in Section
32A-1-111
.
(2) (a) The total number of state stores may not at any time aggregate more than that
number determined by dividing the population of the state by 48,000. [Population]
(b) For purposes of this Subsection (2), population shall be determined by:
(i) the most recent United States decennial or special census; or [by]
(ii) any other population determination made by the United States or state governments.
(3) (a) A state store may not be established within 600 feet of any public or private
school, church, public library, public playground, or park as measured by the method in
Subsection (4).
(b) A state store may not be established within 200 feet of any public or private school,
church, public library, public playground, or park measured in a straight line from the nearest
entrance of the proposed state store to the nearest property boundary of the public or private
school, church, public library, public playground, or park.
(c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the
following exceptions applies:
[(i) The commission finds after full investigation that the premises are located within a
city of the third class or a town, and compliance with the distance requirements would result in
peculiar and exceptional practical difficulties or exceptional and undue hardships in the
establishment of a state store. In that event, the commission may, after giving full consideration
to all of the attending circumstances, following a public hearing in the city or town, and where
- 36 -
practical in the neighborhood concerned, authorize a variance from the distance requirements to
relieve the difficulties or hardships if the variance may be granted without substantial detriment
to the public good and without substantially impairing the intent and purpose of this title.]
(i) with respect to the establishment of a state store within a city of the third class, a
town, or the unincorporated area of a county, the commission may authorize a variance that
reduces the proximity requirements of Subsection (3)(a) or (b) if:
(A) alternative locations for establishing a state store in the community are limited;
(B) a public hearing has been held in the city, town, or county, and where practical in the
neighborhood concerned; and
(C) after giving full consideration to all of the attending circumstances and the policies
stated in Subsections
32A-1-104
(3) and (4), the commission determines that establishing the
state store would not be detrimental to the public health, peace, safety, and welfare of the
community; or
(ii) [With] with respect to the establishment of a state store in any location, the
commission may[, after giving full consideration to all of the attending circumstances, following
a public hearing in the county, and where practical in the neighborhood concerned, reduce the
proximity requirements] authorize a variance to reduce the proximity requirements of Subsection
(3)(a) or (b) in relation to a church:
(A) if the local governing body of the church in question gives its written [approval.]
consent to the variance;
(B) following a public hearing in the county, and where practical in the neighborhood
concerned; and
(C) after giving full consideration to all of the attending circumstances and the policies
stated in Subsections
32A-1-104
(3) and (4).
(4) With respect to any public or private school, church, public library, public
playground, or park, the 600 foot limitation is measured from the nearest entrance of the state
store by following the shortest route of [either] ordinary pedestrian [traffic or, where applicable,
vehicular travel along public thoroughfares, whichever is the closer,] travel to the property
- 37 -
boundary of the public or private school, church, public library, public playground, school
playground, or park.
(5) (a) Nothing in this section prevents the commission from considering the proximity
of any educational, religious, and recreational facility, or any other relevant factor in reaching a
decision on a proposed location.
(b) For purposes of this Subsection (5), "educational facility" includes:
(i) a nursery [schools,] school;
(ii) an infant day care [centers,] center; and
(iii) a trade and technical [schools] school.
Section 14.
Section
32A-2-103
is amended to read:
32A-2-103. Operational restrictions.
(1) Liquor may not be sold from a state store except in a sealed package. The package
may not be opened on the premises of any state store.
(2) (a) An officer, agent, clerk, or employee of a state store may not consume or allow to
be consumed by any person any alcoholic beverage on the premises of a state store.
(b) Violation of this Subsection (2) is a class B misdemeanor.
(3) All liquor sold shall be in packages that are properly marked and labeled in
accordance with the rules adopted under this title.
(4) Liquor may not be sold except at prices fixed by the commission.
(5) Liquor may not be sold, delivered, or furnished to any:
(a) minor;
(b) person actually, apparently, or obviously [drunk] intoxicated;
(c) known habitual drunkard; or
(d) known interdicted person.
(6) Sale or delivery of liquor may not be made on or from the premises of any state store,
nor may any state store be kept open for the sale of liquor:
(a) on Sunday;
(b) on any state or federal legal holiday;
- 38 -
(c) on any day on which any regular general election, regular primary election, or
statewide special election is held;
(d) on any day on which any municipal, special district, or school election is held, but
only within the boundaries of the municipality, special district, or school district holding the
election and only if the municipality, special district, or school district in which the election is
being held notifies the department at least 30 days prior to the date of the election; or
(e) except on days and during hours as the commission may direct by rule or order.
(7) Each state store shall display in a prominent place in the store a sign in large letters
stating: "Warning: Driving under the influence of alcohol or drugs is a serious crime that is
prosecuted aggressively in Utah."
Section 15.
Section
32A-3-101
is amended to read:
32A-3-101. Commission's power to establish package agencies -- Limitations.
(1) (a) The commission may, when considered necessary, create package agencies by
entering into contractual relationships with persons to sell liquor in sealed packages from
premises other than those owned or leased by the state.
(b) The commission shall authorize a person to operate a package agency by issuing a
certificate from the commission that designates the person in charge of the agency as a "package
agent" as defined under Section
32A-1-105
.
(2) (a) Subject to this Subsection (2), the total number of package agencies may not at
any time aggregate more than that number determined by dividing the population of the state by
18,000.
(b) For purposes of Subsection (2)(a), population shall be determined by:
(i) the most recent United States decennial or special census; or
(ii) any other population determination made by the United States or state governments.
(c) (i) The commission may establish seasonal package agencies established in areas [and
for periods it] the commission considers necessary.
(ii) A seasonal package agency [may not be operated] shall be for a period [longer than
nine] of six consecutive months [subject to the restrictions stated in Subsections (2)(c)(i) through
- 39 -
(iii)].
[(i)] (iii) A package agency established for operation during a summer time period is
known as a "Seasonal A" package agency. The period of operation for a "Seasonal A" agency
[may begin as early as February 1 and may continue until October 31.] shall:
(A) begin on May 1; and
(B) end on October 31.
[(ii)] (iv) A package agency established for operation during a winter time period is
known as a "Seasonal B" package agency. The period of operation for a "Seasonal B" agency
[may begin as early as September 1 and may continue until May 31.] shall:
(A) begin on November 1; and
(B) end on April 30.
[(iii)] (v) In determining the number of package agencies that the commission may
establish under this section:
(A) a seasonal package agency is counted as [one half] 1/2 of one package agency; and
(B) each "Seasonal A" agency shall be paired with a "Seasonal B" agency[; and].
[(C) the total number of months that each combined pair may be established for
operation may not exceed 12 months for each calendar year.]
(d) (i) If the location, design, and construction of a hotel may require more than one
package agency sales location to serve the public convenience, the commission may authorize a
single package agent to sell liquor at as many as three locations within the hotel under one
package agency if:
(A) the hotel has a minimum of 150 guest rooms; and
(B) all locations under the agency are:
(I) within the same hotel facility; and
(II) on premises that are managed or operated and owned or leased by the package agent.
(ii) Facilities other than hotels may not have more than one sales location under a single
package agency.
(3) (a) As measured by the method in Subsection (4), the premises of a package agency
- 40 -
may not be established within 600 feet of any[:] public or private school, church, public library,
public playground, or park.
[(i) public or private school;]
[(ii) church;]
[(iii) public library;]
[(iv) public playground; or]
[(v) park.]
(b) [A] The premises of a package agency may not be established within 200 feet of any
public or private school, church, public library, public playground, or park, measured in a straight
line from the nearest entrance of the proposed package agency to the nearest property boundary
of the public or private school, church, public library, public playground, or park.
(c) The restrictions contained in Subsections (3)(a) and (b) govern unless [Subsection
(3)(c)(i) or (ii)] one of the following exemptions applies[.]:
[(i) If the commission finds after full investigation that the premises are located within a
city of the third class or a town, and compliance with the distance requirements would result in
peculiar and exceptional practical difficulties or exceptional and undue hardships in the
establishment of a package agency, the commission may authorize a variance from the distance
requirement to relieve the difficulties or hardships:]
[(A) after giving full consideration to all of the attending circumstances;]
[(B) following a public hearing in:]
[(I) the city or town concerned; and]
[(II) where practical, in the neighborhood concerned; and]
[(C) if the variance may be granted without:]
[(I) substantial detriment to the public good; and]
[(II) substantially impairing the intent and purpose of this title.]
[(ii) With respect to the establishment of a package agency in any location, the
commission may reduce the proximity requirements in relation to a church:]
[(A) after giving full consideration to all of the attending circumstances;]
- 41 -
[(B) following a public hearing in:]
[(I) the county concerned; and]
[(II) where practical, in the neighborhood concerned; and]
[(C) if the local governing body of the church in question gives its written approval.]
(i) with respect to the establishment of a package agency within a city of the third class, a
town, or the unincorporated area of a county, the commission may authorize a variance to reduce
the proximity requirements of Subsection (3)(a) or (b) if:
(A) the local governing authority has granted its written consent to the variance;
(B) alternative locations for establishing a package agency in the community are limited;
(C) a public hearing has been held in the city, town, or county, and where practical in the
neighborhood concerned; and
(D) after giving full consideration to all of the attending circumstances and the policies
stated in Subsections
32A-1-104
(3) and (4), the commission determines that establishing the
package agency would not be detrimental to the public health, peace, safety, and welfare of the
community;
(ii) with respect to the establishment of a package agency in any location, the
commission may authorize a variance to reduce the proximity requirements of Subsection (3)(a)
or (b) in relation to a church:
(A) if the local governing body of the church in question gives its written consent to the
variance;
(B) following a public hearing in the city, town, or county and where practical in the
neighborhood concerned; and
(C) after giving full consideration to all of the attending circumstances and the policies
stated in Subsections
32A-1-104
(3) and (4); or
(iii) with respect to the premises of a package agency issued by the commission that
undergoes a change of ownership, the commission may waive or vary the proximity requirements
of Subsection (3)(a) or (b) in considering whether to grant a package agency to the new owner of
the premises if:
- 42 -
(A) the premises previously received a variance reducing the proximity requirements of
Subsection (3)(a) or (b); or
(B) a variance from proximity or distance requirements was otherwise allowed under this
title.
(4) With respect to any public or private school, church, public library, public
playground, or park, the 600 foot limitation is measured from the nearest entrance of the package
agency by following the shortest route of [either] ordinary pedestrian [traffic, or where
applicable, vehicular travel along public thoroughfares, whichever is the closer,] travel to the
property boundary of the public or private school, church, public library, public playground,
school playground, or park.
(5) (a) Nothing in this section prevents the commission from considering the proximity
of any educational, religious, and recreational facility, or any other relevant factor in reaching a
decision on a proposed location.
(b) For purposes of Subsection (5)(a), "educational facility" includes:
(i) a nursery school;
(ii) an infant day care center; and
(iii) a trade and technical school.
(6) (a) The package agent, under the direction of the department, shall be responsible for
implementing and enforcing this title and the rules adopted under this title to the extent they
relate to the conduct of the agency and its sale of liquor.
(b) A package agent may not be, or construed to be, a state employee nor be otherwise
entitled to any benefits of employment from the state.
(c) A package agent, when selling liquor from a package agency, is considered an agent
of the state only to the extent specifically expressed in the package agency agreement.
(7) The commission may prescribe by policy, directive, or rule, consistent with this title,
general operational requirements of all package agencies relating to:
(a) physical facilities;
(b) conditions of operation;
- 43 -
(c) hours of operation;
(d) inventory levels;
(e) payment schedules;
(f) methods of payment;
(g) premises security; and
(h) any other matters considered appropriate by the commission.
Section 16.
Section
32A-3-102
is amended to read:
32A-3-102. Application requirements.
(1) A person seeking to operate a package agency as a package agent under this chapter
shall file a written application with the department in a form prescribed by the department.
(2) The application shall be accompanied by:
(a) a nonrefundable application fee of $100;
(b) written consent of the local authority;
(c) evidence of proximity to any public or private school, church, public library, public
playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of
Subsections
32A-3-101
(3)[,] and (4)[, and (5)], the application shall be processed in accordance
with those subsections;
(d) a bond as specified by Section
32A-3-105
;
(e) a floor plan of the premises, including a description and highlighting of that part of
the premises in which the applicant proposes that the package agency be established;
(f) evidence that the package agency is carrying public liability insurance in an amount
and form satisfactory to the department;
(g) a signed consent form stating that the package agent will permit any authorized
representative of the commission, department, or any law enforcement officer to have
unrestricted right to enter the package agency;
(h) in the case of [a corporate] an applicant that is a partnership, corporation, or limited
liability company, proper verification evidencing that the person or persons signing the package
agency application are authorized to so act on [the corporation's] behalf of the partnership,
- 44 -
corporation, or limited liability company; and
(i) any other information as the commission or department may direct.
Section 17.
Section
32A-3-103
is amended to read:
32A-3-103. Qualifications.
(1) (a) The commission may not grant a package agency to any person who has been
convicted of:
(i) a felony under any federal or state law;
(ii) any violation of any federal or state law or local ordinance concerning the sale,
manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
[or]
(iii) any crime involving moral turpitude[.]; or
(iv) on two or more occasions within the five years before the day on which the package
agency is granted, driving under the influence of alcohol, any drug, or the combined influence of
alcohol and any drug.
(b) In the case of a partnership [or], corporation, or limited liability company, the
proscription under Subsection (1)(a) applies if any of the following has been convicted of any
offense described in Subsection (1)(a):
(i) a partner[,];
(ii) a managing agent[,];
(iii) a manager;
(iv) an officer[,];
(v) a director[, or];
(vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
[an] the applicant corporation [has been convicted of any offense as provided in Subsection (a)];
or
(vii) a member who owns at least 20% of the applicant limited liability company.
[(2) (a) If any employee or proprietor of a package agency is convicted of any offense
designated in Subsection (1)(a), the]
- 45 -
(c) The proscription under Subsection (1)(a) applies if any person employed to act in a
supervisory or managerial capacity for a package agency has been convicted of any offense
described in Subsection (1)(a).
(2) The commission may[, pursuant to a package agency agreement,] immediately
suspend or revoke the package agency[.] and terminate the package agency agreement
if after the day on which the package agency is granted a person described in Subsection (1)(a),
(b), or (c):
(a) is found to have been convicted of any offense described in Subsection (1)(a) prior to
the package agency being granted; or
(b) on or after the day on which the package agency is granted:
(i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
(ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
influence of alcohol and any drug; and
(B) was convicted of driving under the influence of alcohol, any drug, or the combined
influence of alcohol and any drug within five years before the day on which the person is
convicted of the offense described in Subsection (2)(b)(ii)(A).
[(b) In the case of a partnership or corporation that operates a package agency, if any
partner, managing agent, officer, director, or stockholder who holds at least 20% of the total
issued and outstanding stock of a corporation is convicted of any offense designated in
Subsection (1)(a), the commission may, pursuant to a package agency agreement, immediately
revoke the package agency.]
(3) [Upon the arrest of any package agent on any charge set forth in Subsection (1)(a),
the] The director may take emergency action by immediately suspending the operation of the
package agency for the period during which the criminal matter is being adjudicated[.] if a person
described in Subsection (1)(a), (b), or (c):
(a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii); or
(b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
any drug, or the combined influence of alcohol and any drug; and
- 46 -
(ii) was convicted of driving under the influence of alcohol, any drug, or the combined
influence of alcohol and any drug 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 grant a package agency to any person who has had
any type of license, agency, or permit issued under this title revoked within the last three years.
(ii) The commission may not grant a package agency to any [corporation or partnership]
applicant that is a partnership, corporation, or limited liability company if any partner, managing
agent, manager, officer, director, [or] stockholder who holds at least 20% of the total issued and
outstanding stock of the applicant corporation, or member who owns at least 20% of the
applicant limited liability company is or was:
(A) a partner or managing agent of any partnership[, or is or was] that had any type of
license, agency, 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 license, agency, 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 any limited liability
company that had [a liquor] any type of license, agency, or permit issued under this title revoked
within the last three years.
(b) [A corporation or partnership] An applicant that is a partnership, corporation, or
limited liability company may not be granted a package agency if any of the following had any
type of license, agency, or permit issued under this title revoked while acting in that person's
individual capacity within the last three years:
(i) any partner or managing agent of the applicant partnership [or];
(ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
total issued and outstanding stock of the [corporate] applicant [had a liquor license, agency, or
permit revoked while acting in their individual capacity within the last three years.] corporation;
or
(iii) any manager or member who owns at least 20% of the applicant limited liability
- 47 -
company.
(c) A person acting in an individual capacity may not be granted a package agency if that
person was:
(i) a partner or managing agent of a partnership[, or] that had any type of license, agency,
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 license, agency, 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 [a liquor] any type of license, agency, or permit issued under this title revoked within the last
three years.
(5) (a) Each package agency shall be operated by a natural person, who is either:
(i) the package agent; or
(ii) another natural person that package agent designates.
(b) Each designee shall be:
(i) an employee of the package agent; and [shall be]
(ii) responsible for the operation of the agency.
(c) The conduct of the designee shall be attributable to the package agent.
(d) The package agent shall provide the name of the person operating the package agency
to the department for [its] the department's approval.
(e) The name and title of any designee shall be stated on the application for the package
agency.
(f) The package agent shall:
(i) inform the department of any proposed change in the person designated to operate the
agency[,]; and [shall]
(ii) receive prior approval from the department before implementing the change as
described in this Subsection (5)(f).
(g) Failure to comply with the requirements of this Subsection (5) may result in the
- 48 -
immediate termination of the package agency agreement.
[(6) (a) A person having a license to sell draft beer may not be allowed to operate a
package agency from the same location in which the draft beer is sold.]
[(b) The commission may not establish a package agency in:]
[(i) any restaurant;]
[(ii) any eating place; or]
[(iii) any other location that is situated or arranged so as to make the agency part of the
restaurant or eating place.]
[(7)] (6) (a) A minor may not be:
(i) granted a package agency; or [be]
(ii) employed by a package agent to handle liquor.
(b) The commission may not grant a package agency to an applicant that is a partnership,
corporation, or limited liability company if any of the following is a minor:
(i) a partner or managing agent of the applicant partnership;
(ii) a managing agent, officer, director, or stockholder who holds at least 20% of the total
issued and outstanding stock of the applicant corporation; or
(iii) a manager or member who owns at least 20% of the applicant limited liability
company.
[(8)] (7) If any package agent no longer possesses the qualifications required by this title
for obtaining a package agency, the commission may terminate the package agency contract.
Section 18.
Section
32A-3-106
is amended to read:
32A-3-106. Operational restrictions.
(1) (a) A package agency may not be operated until a package agency agreement has
been entered into by the package agent and the department.
(b) The agreement shall state the conditions of operation by which the package agent and
the department are bound.
(c) If the package agent violates the conditions, terms, or covenants contained in the
agreement, or violates any provisions of this title, the department may take whatever action
- 49 -
against the agent that is allowed by the package agency agreement.
(d) Actions against the package agent are governed solely by the agreement and may
include suspension or revocation of the agency.
[(2) The department shall provide all liquor sold by package agencies.]
(2) (a) A package agency may not purchase liquor from any person except from the
department.
(b) At the discretion of the department, liquor may be provided by the department to a
package agency for sale on consignment.
(3) The department may pay or otherwise remunerate a package agent on any basis [other
than] including sales or volume of business done by the agency.
(4) Liquor may not be sold from any package agency except in a sealed package. The
package may not be opened on the premises of a package agency.
(5) All liquor sold shall be in packages that are properly marked and labeled in
accordance with the rules adopted under this title.
(6) A package agency may not display liquor or price lists in windows or showcases
visible to passersby.
(7) (a) An officer, agent, clerk, or employee of a package agency may not consume or
allow to be consumed by any person any alcoholic beverage on the premises of a package agency.
(b) Violation of this Subsection (7) is a class B misdemeanor.
(8) Liquor may not be sold except at prices fixed by the commission.
(9) Liquor may not be sold, delivered, or furnished to any:
(a) minor;
(b) person actually, apparently, or obviously [drunk] intoxicated;
(c) known habitual drunkard; or
(d) known interdicted person.
(10) Sale or delivery of liquor may not be made on or from the premises of any package
agency nor may any package agency be kept open for the sale of liquor:
(a) on Sunday;
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(b) on any state or federal legal holiday;
(c) on any day on which any regular general election, regular primary election, or
statewide special election is held until after the polls are closed;
(d) on any day on which any municipal, special district, or school election is held until
after the polls are closed, but only within the boundaries of the municipality, special district, or
school district holding the election and only if the municipality, special district, or school district
in which the election is being held notifies the department at least 30 days prior to the date of the
election; or
(e) except on days and during hours as the commission may direct by rule or order.
(11) The package agency certificate issued by the commission shall be permanently
posted in a conspicuous place in the package agency.
(12) Each package agent shall display in a prominent place in the package agency a sign
in large letters stating: "Warning: Driving under the influence of alcohol or drugs is a serious
crime that is prosecuted aggressively in Utah."
(13) (a) A package agency may not close or cease operation for a period longer than 72
hours, unless [written notice is given to]:
(i) the package agency notifies the department in writing at least seven days before the
closing[,]; and
(ii) the closure or cessation of operation is first approved by the department.
(b) [In] Notwithstanding Subsection (13)(a), in the case of emergency closure, immediate
notice of closure shall be made to the department by telephone.
(c) (i) The department may authorize a closure or cessation of operation for a period not
to exceed 60 days.
(ii) The department may extend the initial period an additional 30 days upon written
request of the package agency and upon a showing of good cause.
(iii) A closure or cessation of operation may not exceed a total of 90 days without
commission approval.
(d) [Each] The notice required by Subsection (13)(a) shall include:
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(i) the dates of closure or cessation of operation[,];
(ii) the reason for the closure or cessation of operation[,]; and
(iii) the date on which the agency will reopen or resume operation.
(e) Failure of the agency to provide notice and to obtain department authorization prior to
closure or cessation of operation shall result in an automatic termination of the package agency
contract effective immediately.
(f) Failure of the agency to reopen or resume operation by the approved date shall result
in an automatic termination of the package agency contract effective on that date.
[(14) (a) All liquor shall be stored and sold from the location designated in the package
agent's application as approved by the commission.]
(14) Liquor may not be stored or sold in any place other than as designated in the
package agent's application, unless the package agent first applies for and receives approval from
the department for a change of location within the package agency premises.
[(b)] (15) A package agency may not transfer its operations from one location to another
without prior written approval of the commission.
[(15)] (16) (a) A person, having been granted a package agency, may not sell, transfer,
assign, exchange, barter, give, or attempt in any way to dispose of the package agency to any
other person, whether for monetary gain or not.
(b) A package agency has no monetary value for the purpose of any type of disposition.
Section 19.
Section
32A-3-108
is amended to read:
32A-3-108. Return of inventory.
Any liquor previously [purchased] received from the department on consignment that
remains unsold [and in saleable condition] at the time the package agent's package agency
agreement terminates for any reason, shall be immediately returned to the department [for a
refund of the current value of the liquor] or the liquor is subject to immediate seizure by the
department.
Section 20.
Section
32A-4-101
is amended to read:
32A-4-101. Commission's power to grant licenses -- Limitations.
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(1) Before [any] a restaurant may sell or allow the consumption of liquor on its premises,
it shall first obtain a license from the commission as provided in this part.
(2) The commission may issue restaurant liquor licenses for the purpose of establishing
restaurant liquor outlets at places and in numbers it considers proper for the storage, sale, and
consumption of liquor on premises operated as public restaurants.
(3) (a) (i) Subject to this Subsection (3), the total number of restaurant liquor licenses
may not at any time aggregate more than that number determined as follows:
(A) until October 31, 2003, by dividing the population of the state by 4,500; and
(B) on or after November 1, 2003, by dividing the population of the state by 5,000.
(ii) If the total number of restaurant liquor licenses in effect on October 31, 2003, equals
or exceeds the limitation of Subsection (3)(a)(i):
(A) a license that is in effect on October 31, 2003:
(I) is not invalidated by Subsection (3)(a)(i); and
(II) may be renewed in accordance with this chapter; and
(B) the commission may not grant a new restaurant liquor license until such time as the
total number of restaurant liquor licenses granted under this chapter is less than the limitation of
Subsection (3)(a)(i).
(b) [Population] For purposes of this Subsection (3), population shall be determined by:
(i) the most recent United States decennial or special census; or [by]
(ii) any other population determination made by the United States or state governments.
[(a)] (c) (i) The commission may issue seasonal restaurant liquor licenses established in
areas [and for periods it] the commission considers necessary.
(ii) A seasonal restaurant liquor license [may not be operated] shall be for a period
[longer than nine] of six consecutive months [subject to the following restrictions:].
[(i)] (iii) [Licenses] A restaurant liquor license issued for operation during a summer
time [periods are] period is known as a "Seasonal A" restaurant [licenses] liquor license. The
period of operation for a "Seasonal A" restaurant liquor license [may begin as early as February 1
and may continue until October 31.] shall:
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(A) begin on May 1; and
(B) end on October 31.
[(ii)] (iv) [Licenses] A restaurant liquor license issued for operation during a winter time
[periods are] period is known as a "Seasonal B" restaurant [licenses] liquor license. The period
of operation for a "Seasonal B" restaurant liquor license [may begin as early as September 1 and
may continue until May 31.] shall:
(A) begin on November 1; and
(B) end on April 30.
[(iii)] (v) In determining the number of restaurant liquor licenses that the commission
may issue under this section[,]:
(A) a seasonal [licenses are] license is counted as 1/2 of one restaurant liquor license[.
Each]; and
(B) each "Seasonal A" license shall be paired with a "Seasonal B" license [and the total
number of months that each combined pair may be issued for operation may not exceed 12
months for each calendar year].
[(b)] (d) If the location, design, and construction of a hotel may require more than one
restaurant liquor sales location within the hotel to serve the public convenience, the commission
may authorize the sale of liquor at as many as three restaurant locations within the hotel under
one license if the hotel has a minimum of 150 guest rooms and if all locations under the license
are within the same hotel facility and on premises that are managed or operated and owned or
leased by the licensee. Facilities other than hotels shall have a separate restaurant liquor license
for each restaurant where liquor is sold.
(4) (a) [Restaurant liquor licensee] The premises of a restaurant liquor license may not
be established within 600 feet of any public or private school, church, public library, public
playground, or park, as measured by the method in Subsection (5).
(b) [Restaurant liquor licensee] The premises of a restaurant liquor license may not be
established within 200 feet of any public or private school, church, public library, public
playground, or park, measured in a straight line from the nearest entrance of the proposed outlet
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to the nearest property boundary of the public or private school, church, public library, public
playground, or park.
(c) The restrictions contained in Subsections (4)(a) and (b) govern unless one of the
following exemptions applies:
[(i) The commission finds after full investigation that the premises are located within a
city of the third class, a town, or the unincorporated area of a county, and compliance with the
distance requirements would result in peculiar and exceptional practical difficulties or
exceptional and undue hardships in the granting of a restaurant liquor license. In that event, the
commission may, after giving full consideration to all of the attending circumstances, following a
public hearing in the city or town, and where practical in the neighborhood concerned, authorize
a variance from the distance requirements to relieve the difficulties or hardships if the variance
may be granted without substantial detriment to the public good and without substantially
impairing the intent and purpose of this title.]
[(ii) With respect to the establishment of a restaurant licensee in any location, the
commission may, after giving full consideration to all of the attending circumstances, following a
public hearing in the county, and where practical in the neighborhood concerned, reduce the
proximity requirements in relation to a church if the local governing body of the church in
question gives its written approval.]
[(iii) Any on-premises beer retailer licensee existing on March 1, 1990, need not comply
with the restrictions contained in Subsections (4)(a) and (b) if it applies for a restaurant liquor
license before January 1, 1991.]
(i) with respect to the establishment of a restaurant liquor license in any location, the
commission may authorize a variance to reduce the proximity requirements of Subsection (4)(a)
or (b) if:
(A) the local governing authority has granted its written consent to the variance;
(B) alternative locations for establishing a restaurant liquor license in the community are
limited;
(C) a public hearing has been held in the city, town, or county, and where practical in the
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