Enrolled Copy S.B. 328 1 Alcohol Amendments 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Jerry W. Stevenson House Sponsor: Karen M. Peterson 2 3 LONG TITLE 4 General Description: 5 This bill amends provisions relating to alcohol. 6 Highlighted Provisions: 7 This bill: 8 ▸ defines terms; 9 ▸ permits a local government to authorize an outlet or restaurant with an alcohol license to 10 be in proximity to a public park under certain conditions; 11 ▸ clarifies the Alcoholic Beverage Services Commission's authority when granting or 12 denying an application for a retail license; 13 ▸ provides that a hotel may serve spirituous liquor in a container that is not the spirituous 14 liquor's original container; 15 ▸ provides that a patron of a facility with multiple licenses may transport beer between the 16 premises under certain conditions; 17 ▸ authorizes staff of a retail licensee that are 21 years old or older to test the quality and 18 taste of liquor using the "straw test"; 19 ▸ removes the requirement that dispensing locations under an equity license be connected 20 by a private roadway; 21 ▸ provides that an equity license applies to all locations owned by an equity licensee; 22 ▸ provides that an amphitheater qualifies for a banquet license; 23 ▸ provides that the Department of Alcoholic Beverage Services may approve multiple 24 locations in or on the licensed premises of an on-premise banquet licensee; 25 ▸ lowers the seating capacity threshold for a sport facility or concert venue for purposes of 26 receiving an on-premises beer retailer license; 27 ▸ provides the circumstances under which an off-premise beer retailer may sell beer at a S.B. 328 Enrolled Copy 28 loading area or a designated parking stall; 29 ▸ requires that a person applying for an event permit post a surety bond; and 30 ▸ makes technical changes. 31 Money Appropriated in this Bill: 32 None 33 Other Special Clauses: 34 None 35 Utah Code Sections Affected: 36 AMENDS: 37 32B-1-102, as last amended by Laws of Utah 2024, Chapters 438, 464 38 32B-1-202, as last amended by Laws of Utah 2024, Chapter 94 39 32B-1-407, as last amended by Laws of Utah 2018, Chapter 249 40 32B-1-603.5, as enacted by Laws of Utah 2023, Chapter 371 41 32B-1-607, as last amended by Laws of Utah 2021, Chapter 291 42 32B-5-201, as last amended by Laws of Utah 2024, Chapter 94 43 32B-5-304, as last amended by Laws of Utah 2024, Chapter 94 44 32B-5-307, as last amended by Laws of Utah 2022, Chapter 447 45 32B-5-308, as last amended by Laws of Utah 2019, Chapter 403 46 32B-6-403, as last amended by Laws of Utah 2024, Chapter 94 47 32B-6-603, as last amended by Laws of Utah 2023, Chapter 371 48 32B-6-604, as last amended by Laws of Utah 2024, Chapter 94 49 32B-6-605, as last amended by Laws of Utah 2024, Chapter 94 50 32B-6-702, as last amended by Laws of Utah 2024, Chapter 94 51 32B-7-202, as last amended by Laws of Utah 2024, Chapter 94 52 32B-9-203, as enacted by Laws of Utah 2010, Chapter 276 53 54 Be it enacted by the Legislature of the state of Utah: 55 Section 1. Section 32B-1-102 is amended to read: 56 32B-1-102 . Definitions. 57 As used in this title: 58 (1) "Airport lounge" means a business location: 59 (a) at which an alcoholic product is sold at retail for consumption on the premises; and 60 (b) that is located at an international airport or domestic airport. 61 (2) "Airport lounge license" means a license issued in accordance with Chapter 5, Retail - 2 - Enrolled Copy S.B. 328 62 License Act, and Chapter 6, Part 5, Airport Lounge License. 63 (3) "Alcoholic beverage" means the following: 64 (a) beer; or 65 (b) liquor. 66 (4)(a) "Alcoholic product" means a product that: 67 (i) contains at least .5% of alcohol by volume; and 68 (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other 69 process that uses liquid or combinations of liquids, whether drinkable or not, to 70 create alcohol in an amount equal to or greater than .5% of alcohol by volume. 71 (b) "Alcoholic product" includes an alcoholic beverage. 72 (c) "Alcoholic product" does not include any of the following common items that 73 otherwise come within the definition of an alcoholic product: 74 (i) except as provided in Subsection (4)(d), an extract; 75 (ii) vinegar; 76 (iii) preserved nonintoxicating cider; 77 (iv) essence; 78 (v) tincture; 79 (vi) food preparation; or 80 (vii) an over-the-counter medicine. 81 (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation 82 when it is used as a flavoring in the manufacturing of an alcoholic product. 83 (5) "Alcohol training and education seminar" means a seminar that is: 84 (a) required by Chapter 1, Part 7, Alcohol Training and Education Act; and 85 (b) described in Section 26B-5-205. 86 (6)(a) "Amphitheater" means an outdoor, multi-use performance venue that: 87 (i) is primarily used to present live entertainment, including music, dance, comedy, 88 and theater; 89 (ii) has the capacity to hold over 10,000 patrons; and 90 (iii) is located in a county of the first class. 91 (b) "Amphitheater" does not include a space that is used to present sporting events or 92 sporting competitions. 93 [(6)] (7) "Arena" means an enclosed building: 94 (a) that is managed by: 95 (i) the same person who owns the enclosed building; - 3 - S.B. 328 Enrolled Copy 96 (ii) a person who has a majority interest in each person who owns or manages a space 97 in the enclosed building; or 98 (iii) a person who has authority to direct or exercise control over the management or 99 policy of each person who owns or manages a space in the enclosed building; 100 (b) that operates as a venue; and 101 (c) that has an occupancy capacity of at least 12,500. 102 [(7)] (8) "Arena license" means a license issued in accordance with Chapter 5, Retail 103 License Act, and Chapter 8c, Arena License Act. 104 [(8)] (9) "Banquet" means an event: 105 (a) that is a private event or a privately sponsored event; 106 (b) that is held at one or more designated locations approved by the commission in or on 107 the premises of: 108 (i) a hotel; 109 (ii) a resort facility; 110 (iii) a sports center; 111 (iv) a convention center; 112 (v) a performing arts facility; 113 (vi) an arena;[ or] 114 (vii) a restaurant venue; or 115 (viii) an amphitheater; 116 (c) for which there is a contract: 117 (i) between a person operating a facility listed in Subsection [(8)(b)] (9)(b) and 118 another person that has common ownership of less than 20% with the person 119 operating the facility; and 120 (ii) under which the person operating a facility listed in Subsection [(8)(b)] (9)(b) is 121 required to provide an alcoholic product at the event; and 122 (d) at which food and alcoholic products may be sold, offered for sale, or furnished. 123 [(9)] (10)(a) "Bar establishment license" means a license issued in accordance with 124 Chapter 5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License. 125 (b) "Bar establishment license" includes: 126 (i) a dining club license; 127 (ii) an equity license; 128 (iii) a fraternal license; or 129 (iv) a bar license. - 4 - Enrolled Copy S.B. 328 130 [(10)] (11) "Bar license" means a license issued in accordance with Chapter 5, Retail 131 License Act, and Chapter 6, Part 4, Bar Establishment License. 132 [(11)] (12)(a) "Beer" means a product that: 133 (i) contains: 134 (A) at least .5% of alcohol by volume; and 135 (B) no more than 5% of alcohol by volume or 4% by weight; 136 (ii) is obtained by fermentation, infusion, or decoction of: 137 (A) malt; or 138 (B) a malt substitute; and 139 (iii) is clearly marketed, labeled, and identified as: 140 (A) beer; 141 (B) ale; 142 (C) porter; 143 (D) stout; 144 (E) lager; 145 (F) a malt; 146 (G) a malted beverage; or 147 (H) seltzer. 148 (b) "Beer" may contain: 149 (i) hops extract; 150 (ii) caffeine, if the caffeine is a natural constituent of an added ingredient; or 151 (iii) a propylene glycol-, ethyl alcohol-, or ethanol-based flavoring agent that: 152 (A) is used in the production of beer; 153 (B) is in a formula approved by the federal Alcohol and Tobacco Tax and Trade 154 Bureau after the formula is filed for approval under 27 C.F.R. Sec. 25.55; and 155 (C) does not contribute more than 10% of the overall alcohol content of the beer. 156 (c) "Beer" does not include: 157 (i) a flavored malt beverage; 158 (ii) a product that contains alcohol derived from: 159 (A) except as provided in Subsection [(11)(b)(iii)] (12)(b)(iii), spirituous liquor; or 160 (B) wine; or 161 (iii) a product that contains an additive masking or altering a physiological effect of 162 alcohol, including kratom, kava, cannabidiol, or natural or synthetic 163 tetrahydrocannabinol. - 5 - S.B. 328 Enrolled Copy 164 [(12)] (13) "Beer-only restaurant license" means a license issued in accordance with Chapter 165 5, Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License. 166 [(13)] (14) "Beer retailer" means a business that: 167 (a) is engaged, primarily or incidentally, in the retail sale of beer to a patron, whether for 168 consumption on or off the business premises; and 169 (b) is licensed as: 170 (i) an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise 171 Beer Retailer Local Authority; or 172 (ii) an on-premise beer retailer, in accordance with Chapter 5, Retail License Act, and 173 Chapter 6, Part 7, On-Premise Beer Retailer License. 174 [(14)] (15) "Beer wholesaling license" means a license: 175 (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and 176 (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more retail 177 licensees or off-premise beer retailers. 178 [(15)] (16) "Billboard" means a public display used to advertise, including: 179 (a) a light device; 180 (b) a painting; 181 (c) a drawing; 182 (d) a poster; 183 (e) a sign; 184 (f) a signboard; or 185 (g) a scoreboard. 186 [(16)] (17) "Brewer" means a person engaged in manufacturing: 187 (a) beer; 188 (b) heavy beer; or 189 (c) a flavored malt beverage. 190 [(17)] (18) "Brewery manufacturing license" means a license issued in accordance with 191 Chapter 11, Part 5, Brewery Manufacturing License. 192 [(18)] (19) "Certificate of approval" means a certificate of approval obtained from the 193 department under Section 32B-11-201. 194 [(19)] (20) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided 195 by a bus company to a group of persons pursuant to a common purpose: 196 (a) under a single contract; 197 (b) at a fixed charge in accordance with the bus company's tariff; and - 6 - Enrolled Copy S.B. 328 198 (c) to give the group of persons the exclusive use of the passenger bus, coach, or other 199 motor vehicle, and a driver to travel together to one or more specified destinations. 200 [(20)] (21) "Church" means a building: 201 (a) set apart for worship; 202 (b) in which religious services are held; 203 (c) with which clergy is associated; and 204 (d) that is tax exempt under the laws of this state. 205 [(21)] (22) "Commission" means the Alcoholic Beverage Services Commission created in 206 Section 32B-2-201. 207 [(22)] (23) "Commissioner" means a member of the commission. 208 [(23)] (24) "Community location" means: 209 (a) a public or private school as defined in Subsection [32B-1-102(115)] (116); 210 (b) a church; 211 (c) a public library; 212 (d) a public playground; or 213 (e) a public park. 214 [(24)] (25) "Community location governing authority" means: 215 (a) the governing body of the community location; or 216 (b) if the commission does not know who is the governing body of a community 217 location, a person who appears to the commission to have been given on behalf of the 218 community location the authority to prohibit an activity at the community location. 219 [(25)] (26) "Container" means a receptacle that contains an alcoholic product, including: 220 (a) a bottle; 221 (b) a vessel; or 222 (c) a similar item. 223 [(26)] (27) "Controlled group of manufacturers" means as the commission defines by rule 224 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. 225 [(27)] (28) "Convention center" means a facility that is: 226 (a) in total at least 30,000 square feet; and 227 (b) otherwise defined as a "convention center" by the commission by rule. 228 [(28)] (29)(a) "Counter" means a surface or structure in a dining area of a licensed 229 premises where seating is provided to a patron for service of food. 230 (b) "Counter" does not include a dispensing structure. 231 [(29)] (30) "Crime involving moral turpitude" is as defined by the commission by rule. - 7 - S.B. 328 Enrolled Copy 232 [(30)] (31) "Department" means the Department of Alcoholic Beverage Services created in 233 Section 32B-2-203. 234 [(31)] (32) "Department compliance officer" means an individual who is: 235 (a) an auditor or inspector; and 236 (b) employed by the department. 237 [(32)] (33) "Department sample" means liquor that is placed in the possession of the 238 department for testing, analysis, and sampling. 239 [(33)] (34) "Dining club license" means a license issued in accordance with Chapter 5, 240 Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated 241 by the commission as a dining club license. 242 [(34)] (35) "Director," unless the context requires otherwise, means the director of the 243 department. 244 [(35)] (36) "Disciplinary proceeding" means an adjudicative proceeding permitted under this 245 title: 246 (a) against a person subject to administrative action; and 247 (b) that is brought on the basis of a violation of this title. 248 [(36)] (37)(a) Subject to Subsection [(36)(b)] (37)(b), "dispense" means: 249 (i) drawing an alcoholic product; and 250 (ii) using the alcoholic product at the location from which it was drawn to mix or 251 prepare an alcoholic product to be furnished to a patron of the retail licensee. 252 (b) The definition of "dispense" in this Subsection [(36)] (37) applies only to: 253 (i) a full-service restaurant license; 254 (ii) a limited-service restaurant license; 255 (iii) a reception center license; 256 (iv) a beer-only restaurant license; 257 (v) a bar license; 258 (vi) an on-premise beer retailer; 259 (vii) an airport lounge license; 260 (viii) an on-premise banquet license; and 261 (ix) a hospitality amenity license. 262 [(37)] (38) "Dispensing structure" means a surface or structure on a licensed premises: 263 (a) where an alcoholic product is dispensed; or 264 (b) from which an alcoholic product is served. 265 [(38)] (39) "Distillery manufacturing license" means a license issued in accordance with - 8 - Enrolled Copy S.B. 328 266 Chapter 11, Part 4, Distillery Manufacturing License. 267 [(39)] (40) "Distressed merchandise" means an alcoholic product in the possession of the 268 department that is saleable, but for some reason is unappealing to the public. 269 [(40)] (41) "Domestic airport" means an airport that: 270 (a) has at least 15,000 commercial airline passenger boardings in any five-year period; 271 (b) receives scheduled commercial passenger aircraft service; and 272 (c) is not an international airport. 273 [(41)] (42) "Equity license" means a license issued in accordance with Chapter 5, Retail 274 License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the 275 commission as an equity license. 276 [(42)] (43) "Event permit" means: 277 (a) a single event permit; or 278 (b) a temporary beer event permit. 279 [(43)] (44) "Exempt license" means a license exempt under Section 32B-1-201 from being 280 considered in determining the total number of retail licenses that the commission may 281 issue at any time. 282 [(44)] (45)(a) "Flavored malt beverage" means a beverage: 283 (i) that contains at least .5% alcohol by volume; 284 (ii) for which the producer is required to file a formula for approval with the federal 285 Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because 286 the beverage is treated by processing, filtration, or another method of manufacture 287 that is not generally recognized as a traditional process in the production of a beer, 288 ale, porter, stout, lager, or malt liquor; and 289 (iii) for which the producer is required to file a formula for approval with the federal 290 Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because 291 the beverage includes an ingredient containing alcohol. 292 (b) "Flavored malt beverage" may contain a propylene glycol-, ethyl alcohol-, or 293 ethanol-based flavoring agent that contributes to the overall alcohol content of the 294 beverage. 295 (c) "Flavored malt beverage" does not include beer or heavy beer. 296 (d) "Flavored malt beverage" is considered liquor for purposes of this title. 297 [(45)] (46) "Fraternal license" means a license issued in accordance with Chapter 5, Retail 298 License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the 299 commission as a fraternal license. - 9 - S.B. 328 Enrolled Copy 300 [(46)] (47) "Full-service restaurant license" means a license issued in accordance with 301 Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License. 302 [(47)] (48)(a) "Furnish" means by any means to provide with, supply, or give an 303 individual an alcoholic product, by sale or otherwise. 304 (b) "Furnish" includes to: 305 (i) serve; 306 (ii) deliver; or 307 (iii) otherwise make available. 308 [(48)] (49) "Guest" means an individual who meets the requirements of Subsection 309 32B-6-407(9). 310 [(49)] (50) "Hard cider" means the same as that term is defined in 26 U.S.C. Sec. 5041. 311 [(50)] (51) "Health care practitioner" means: 312 (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act; 313 (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act; 314 (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act; 315 (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice 316 Act; 317 (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b, 318 Nurse Practice Act; 319 (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy 320 Practice Act; 321 (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational 322 Therapy Practice Act; 323 (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act; 324 (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health 325 Professional Practice Act; 326 (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act; 327 (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical Practice 328 Act; 329 (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental 330 Hygienist Practice Act; and 331 (m) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician Assistant 332 Act. 333 [(51)] (52)(a) "Heavy beer" means a product that: - 10 - Enrolled Copy S.B. 328 334 (i)(A) contains more than 5% alcohol by volume; 335 (B) contains at least .5% of alcohol by volume and no more than 5% of alcohol by 336 volume or 4% by weight, and a propolyne glycol-, ethyl alcohol-, or 337 ethanol-based flavoring agent that contributes more than 10% of the overall 338 alcohol content of the product; or 339 (C) contains at least .5% of alcohol by volume and no more than 5% of alcohol by 340 volume or 4% by weight, and has a label or packaging that is rejected under 341 Subsection 32B-1-606(3)(b); and 342 (ii) is obtained by fermentation, infusion, or decoction of: 343 (A) malt; or 344 (B) a malt substitute. 345 (b) "Heavy beer" may, if the heavy beer contains more than 5% alcohol by volume, 346 contain a propolyne glycol-, ethyl alcohol-, or ethanol-based flavoring agent that 347 contributes to the overall alcohol content of the heavy beer. 348 (c) "Heavy beer" does not include: 349 (i) a flavored malt beverage; 350 (ii) a product that contains alcohol derived from: 351 (A) except as provided in Subsections [(51)(a)(i)(B)] (52)(a)(i)(B) and [(51)(b)] 352 (52)(b), spirituous liquor; or 353 (B) wine; or 354 (iii) a product that contains an additive masking or altering a physiological effect of 355 alcohol, including kratom, kava, cannabidiol, or natural or synthetic 356 tetrahydrocannabinol. 357 (d) "Heavy beer" is considered liquor for the purposes of this title. 358 [(52)] (53) "Hospitality amenity license" means a license issued in accordance with Chapter 359 5, Retail License Act, and Chapter 6, Part 10, Hospitality Amenity License. 360 [(53)] (54)(a) "Hotel" means a commercial lodging establishment that: 361 (i) offers at least 40 rooms as temporary sleeping accommodations for compensation; 362 (ii) is capable of hosting conventions, conferences, and food and beverage functions 363 under a banquet contract; and 364 (iii)(A) has adequate kitchen or culinary facilities on the premises to provide 365 complete meals; 366 (B) has at least 1,000 square feet of function space consisting of meeting or dining 367 rooms that can be reserved for a banquet and can accommodate at least 75 - 11 - S.B. 328 Enrolled Copy 368 individuals; or 369 (C) if the establishment is located in a small or unincorporated locality, has an 370 appropriate amount of function space consisting of meeting or dining rooms 371 that can be reserved for private use under a banquet contract, as determined by 372 the commission. 373 (b) "Hotel" includes a commercial lodging establishment that: 374 (i) meets the requirements under Subsection [(53)(a)] (54)(a); and 375 (ii) has one or more privately owned dwelling units. 376 [(54)] (55) "Hotel license" means a license issued in accordance with Chapter 5, Retail 377 License Act, and Chapter 8b, Hotel License Act. 378 [(55)] (56) "Identification card" means an identification card issued under Title 53, Chapter 379 3, Part 8, Identification Card Act. 380 [(56)] (57) "Industry representative" means an individual who is compensated by salary, 381 commission, or other means for representing and selling an alcoholic product of a 382 manufacturer, supplier, or importer of liquor. 383 [(57)] (58) "Industry representative sample" means liquor that is placed in the possession of 384 the department for testing, analysis, and sampling by a local industry representative on 385 the premises of the department to educate the local industry representative of the quality 386 and characteristics of the product. 387 [(58)] (59) "Interdicted person" means a person to whom the sale, offer for sale, or 388 furnishing of an alcoholic product is prohibited by: 389 (a) law; or 390 (b) court order. 391 [(59)] (60) "International airport" means an airport: 392 (a) with a United States Customs and Border Protection office on the premises of the 393 airport; and 394 (b) at which international flights may enter and depart. 395 [(60)] (61) "Intoxicated" or "intoxication" means that 396 an individual exhibits plain and easily observable outward manifestations of behavior or 397 physical signs produced by or as a result of the use of: 398 (a) an alcoholic product; 399 (b) a controlled substance; 400 (c) a substance having the property of releasing toxic vapors; or 401 (d) a combination of products or substances described in Subsections [(60)(a)] (61)(a) - 12 - Enrolled Copy S.B. 328 402 through (c). 403 [(61)] (62) "Investigator" means an individual who is: 404 (a) a department compliance officer; or 405 (b) a nondepartment enforcement officer. 406 [(62)] (63) "License" means: 407 (a) a retail license; 408 (b) a sublicense; 409 (c) a license issued in accordance with Chapter 7, Part 4, Off-premise Beer Retailer State 410 License; 411 (d) a license issued in accordance with Chapter 11, Manufacturing and Related Licenses 412 Act; 413 (e) a license issued in accordance with Chapter 12, Liquor Warehousing License Act; 414 (f) a license issued in accordance with Chapter 13, Beer Wholesaling License Act; or 415 (g) a license issued in accordance with Chapter 17, Liquor Transport License Act. 416 [(63)] (64) "Licensee" means a person who holds a license. 417 [(64)] (65) "Limited-service restaurant license" means a license issued in accordance with 418 Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant 419 License. 420 [(65)] (66) "Limousine" means a motor vehicle licensed by the state or a local authority, 421 other than a bus or taxicab: 422 (a) in which the driver and a passenger are separated by a partition, glass, or other 423 barrier; 424 (b) that is provided by a business entity to one or more individuals at a fixed charge in 425 accordance with the business entity's tariff; and 426 (c) to give the one or more individuals the exclusive use of the limousine and a driver to 427 travel to one or more specified destinations. 428 [(66)] (67)(a)(i) "Liquor" means a liquid that: 429 (A) is: 430 (I) alcohol; 431 (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid; 432 (III) a combination of liquids a part of which is spirituous, vinous, or 433 fermented; or 434 (IV) other drink or drinkable liquid; and 435 (B)(I) contains at least .5% alcohol by volume; and - 13 - S.B. 328 Enrolled Copy 436 (II) is suitable to use for beverage purposes. 437 (ii) "Liquor" includes: 438 (A) heavy beer; 439 (B) wine; and 440 (C) a flavored malt beverage. 441 (b) "Liquor" does not include beer. 442 [(67)] (68) "Liquor Control Fund" means the enterprise fund created by Section 32B-2-301. 443 [(68)] (69) "Liquor transport license" means a license issued in accordance with Chapter 17, 444 Liquor Transport License Act. 445 [(69)] (70) "Liquor warehousing license" means a license that is issued: 446 (a) in accordance with Chapter 12, Liquor Warehousing License Act; and 447 (b) to a person, other than a licensed manufacturer, who engages in the importation for 448 storage, sale, or distribution of liquor regardless of amount. 449 [(70)] (71) "Local authority" means: 450 (a) for premises that are located in an unincorporated area of a county, the governing 451 body of a county; 452 (b) for premises that are located in an incorporated city or town, the governing body of 453 the city or town; or 454 (c) for premises that are located in a project area as defined in Section 63H-1-102 and in 455 a project area plan adopted by the Military Installation Development Authority under 456 Title 63H, Chapter 1, Military Installation Development Authority Act, the Military 457 Installation Development Authority. 458 [(71)] (72) "Lounge or bar area" is as defined by rule made by the commission. 459 [(72)] (73) "Malt substitute" means: 460 (a) rice; 461 (b) grain; 462 (c) bran; 463 (d) glucose; 464 (e) sugar; or 465 (f) molasses. 466 [(73)] (74) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, 467 or otherwise make an alcoholic product for personal use or for sale or distribution to 468 others. 469 [(74)] (75) "Member" means an individual who, after paying regular dues, has full privileges - 14 - Enrolled Copy S.B. 328 470 in an equity licensee or fraternal licensee. 471 [(75)] (76)(a) "Military installation" means a base, air field, camp, post, station, yard, 472 center, or homeport facility for a ship: 473 (i)(A) under the control of the United States Department of Defense; or 474 (B) of the National Guard; 475 (ii) that is located within the state; and 476 (iii) including a leased facility. 477 (b) "Military installation" does not include a facility used primarily for: 478 (i) civil works; 479 (ii) a rivers and harbors project; or 480 (iii) a flood control project. 481 [(76)] (77) "Minibar" means an area of a hotel guest room where one or more alcoholic 482 products are kept and offered for self-service sale or consumption. 483 [(77)] (78) "Minor" means an individual under 21 years old. 484 [(78)] (79) "Nondepartment enforcement agency" means an agency that: 485 (a)(i) is a state agency other than the department; or 486 (ii) is an agency of a county, city, or town; and 487 (b) has a responsibility to enforce one or more provisions of this title. 488 [(79)] (80) "Nondepartment enforcement officer" means an individual who is: 489 (a) a peace officer, examiner, or investigator; and 490 (b) employed by a nondepartment enforcement agency. 491 [(80)] (81)(a) "Off-premise beer retailer" means a beer retailer who is: 492 (i) licensed in accordance with Chapter 7, Off-Premise Beer Retailer Act; and 493 (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's 494 premises. 495 (b) "Off-premise beer retailer" does not include an on-premise beer retailer. 496 [(81)] (82) "Off-premise beer retailer state license" means a state license issued in 497 accordance with Chapter 7, Part 4, Off-premise Beer Retailer State License. 498 [(82)] (83) "On-premise banquet license" means a license issued in accordance with Chapter 499 5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License. 500 [(83)] (84) "On-premise beer retailer" means a beer retailer who is: 501 (a) authorized to sell, offer for sale, or furnish beer under a license issued in accordance 502 with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer Retailer 503 License; and - 15 - S.B. 328 Enrolled Copy 504 (b) engaged in the sale of beer to a patron for consumption on the beer retailer's 505 premises: 506 (i) regardless of whether the beer retailer sells beer for consumption off the licensed 507 premises; and 508 (ii) on and after March 1, 2012, operating: 509 (A) as a tavern; or 510 (B) in a manner that meets the requirements of Subsection 32B-6-703(2)(e)(i). 511 [(84)] (85) "Opaque" means impenetrable to sight. 512 [(85)] (86) "Package agency" means a retail liquor location operated: 513 (a) under an agreement with the department; and 514 (b) by a person: 515 (i) other than the state; and 516 (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, 517 Package Agency, to sell packaged liquor for consumption off the premises of the 518 package agency. 519 [(86)] (87) "Package agent" means a person who holds a package agency. 520 [(87)] (88) "Patron" means an individual to whom food, beverages, or services are sold, 521 offered for sale, or furnished, or who consumes an alcoholic product including: 522 (a) a customer; 523 (b) a member; 524 (c) a guest; 525 (d) an attendee of a banquet or event; 526 (e) an individual who receives room service; 527 (f) a resident of a resort; or 528 (g) a hospitality guest, as defined in Section 32B-6-1002, under a hospitality amenity 529 license. 530 [(88)] (89)(a) "Performing arts facility" means a multi-use performance space that: 531 (i) is primarily used to present various types of performing arts, including dance, 532 music, and theater; 533 (ii) contains over 2,500 seats; 534 (iii) is owned and operated by a governmental entity; and 535 (iv) is located in a city of the first class. 536 (b) "Performing arts facility" does not include a space that is used to present sporting 537 events or sporting competitions. - 16 - Enrolled Copy S.B. 328 538 [(89)] (90) "Permittee" means a person issued a permit under: 539 (a) Chapter 9, Event Permit Act; or 540 (b) Chapter 10, Special Use Permit Act. 541 [(90)] (91) "Person subject to administrative action" means: 542 (a) a licensee; 543 (b) a permittee; 544 (c) a manufacturer; 545 (d) a supplier; 546 (e) an importer; 547 (f) one of the following holding a certificate of approval: 548 (i) an out-of-state brewer; 549 (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or 550 (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or 551 (g) staff of: 552 (i) a person listed in Subsections [(90)(a)] (91)(a) through (f); or 553 (ii) a package agent. 554 [(91)] (92) "Premises" means a building, enclosure, or room used in connection with the 555 storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic 556 product, unless otherwise defined in this title or rules made by the commission. 557 [(92)] (93) "Prescription" means an order issued by a health care practitioner when: 558 (a) the health care practitioner is licensed under Title 58, Occupations and Professions, 559 to prescribe a controlled substance, other drug, or device for medicinal purposes; 560 (b) the order is made in the course of that health care practitioner's professional practice; 561 and 562 (c) the order is made for obtaining an alcoholic product for medicinal purposes only. 563 [(93)] (94)(a) "Primary spirituous liquor" means the main distilled spirit in a beverage. 564 (b) "Primary spirituous liquor" does not include a secondary flavoring ingredient. 565 [(94)] (95) "Principal license" means: 566 (a) a resort license; 567 (b) a hotel license; or 568 (c) an arena license. 569 [(95)] (96)(a) "Private event" means a specific social, business, or recreational event: 570 (i) for which an entire room, area, or hall is leased or rented in advance by an 571 identified group; and - 17 - S.B. 328 Enrolled Copy 572 (ii) that is limited in attendance to people who are specifically designated and their 573 guests. 574 (b) "Private event" does not include an event to which the general public is invited, 575 whether for an admission fee or not. 576 [(96)] (97) "Privately sponsored event" means a specific social, business, or recreational 577 event: 578 (a) that is held in or on the premises of an on-premise banquet licensee; and 579 (b) to which entry is restricted by an admission fee. 580 [(97)] (98)(a) "Proof of age" means: 581 (i) an identification card; 582 (ii) an identification that: 583 (A) is substantially similar to an identification card; 584 (B) is issued in accordance with the laws of a state other than Utah in which the 585 identification is issued; 586 (C) includes date of birth; and 587 (D) has a picture affixed; 588 (iii) a valid driver license certificate that: 589 (A) includes date of birth; 590 (B) has a picture affixed; and 591 (C) is issued under Title 53, Chapter 3, Uniform Driver License Act, in 592 accordance with the laws of the state in which it is issued, or in accordance 593 with federal law by the United States Department of State; 594 (iv) a military identification card that: 595 (A) includes date of birth; and 596 (B) has a picture affixed; or 597 (v) a valid passport. 598 (b) "Proof of age" does not include a driving privilege card issued in accordance with 599 Section 53-3-207. 600 [(98)] (99) "Provisions applicable to a sublicense" means: 601 (a) for a full-service restaurant sublicense, the provisions applicable to a full-service 602 restaurant license under Chapter 6, Part 2, Full-Service Restaurant License; 603 (b) for a limited-service restaurant sublicense, the provisions applicable to a 604 limited-service restaurant license under Chapter 6, Part 3, Limited-Service Restaurant 605 License; - 18 - Enrolled Copy S.B. 328 606 (c) for a bar establishment sublicense, the provisions applicable to a bar establishment 607 license under Chapter 6, Part 4, Bar Establishment License; 608 (d) for an on-premise banquet sublicense, the provisions applicable to an on-premise 609 banquet license under Chapter 6, Part 6, On-Premise Banquet License; 610 (e) for an on-premise beer retailer sublicense, the provisions applicable to an on-premise 611 beer retailer license under Chapter 6, Part 7, On-Premise Beer Retailer License; 612 (f) for a beer-only restaurant sublicense, the provisions applicable to a beer-only 613 restaurant license under Chapter 6, Part 9, Beer-Only Restaurant License; 614 (g) for a hospitality amenity license, the provisions applicable to a hospitality amenity 615 license under Chapter 6, Part 10, Hospitality Amenity License; and 616 (h) for a spa sublicense, the provisions applicable to the sublicense under Chapter 8d, 617 Part 2, Resort Spa Sublicense. 618 [(99)] (100)(a) "Public building" means a building or permanent structure that is: 619 (i) owned or leased by: 620 (A) the state; or 621 (B) a local government entity; and 622 (ii) used for: 623 (A) public education; 624 (B) transacting public business; or 625 (C) regularly conducting government activities. 626 (b) "Public building" does not include a building owned by the state or a local 627 government entity when the building is used by a person, in whole or in part, for a 628 proprietary function. 629 [(100)] (101) "Public conveyance" means a conveyance that the public or a portion of the 630 public has access to and a right to use for transportation, including an airline, railroad, 631 bus, boat, or other public conveyance. 632 [(101)] (102) "Reception center" means a business that: 633 (a) operates facilities that are at least 5,000 square feet; and 634 (b) has as its primary purpose the leasing of the facilities described in Subsection [ 635 (101)(a)] (102)(a) to a third party for the third party's event. 636 [(102)] (103) "Reception center license" means a license issued in accordance with Chapter 637 5, Retail License Act, and Chapter 6, Part 8, Reception Center License. 638 [(103)] (104)(a) "Record" means information that is: 639 (i) inscribed on a tangible medium; or - 19 - S.B. 328 Enrolled Copy 640 (ii) stored in an electronic or other medium and is retrievable in a perceivable form. 641 (b) "Record" includes: 642 (i) a book; 643 (ii) a book of account; 644 (iii) a paper; 645 (iv) a contract; 646 (v) an agreement; 647 (vi) a document; or 648 (vii) a recording in any medium. 649 [(104)] (105) "Residence" means a person's principal place of abode within Utah. 650 [(105)] (106) "Resident," in relation to a resort, means the same as that term is defined in 651 Section 32B-8-102. 652 [(106)] (107) "Resort" means the same as that term is defined in Section 32B-8-102. 653 [(107)] (108) "Resort facility" is as defined by the commission by rule. 654 [(108)] (109) "Resort license" means a license issued in accordance with Chapter 5, Retail 655 License Act, and Chapter 8, Resort License Act. 656 [(109)] (110) "Responsible alcohol service plan" means a written set of policies and 657 procedures that outlines measures to prevent employees from: 658 (a) over-serving alcoholic beverages to customers; 659 (b) serving alcoholic beverages to customers who are actually, apparently, or obviously 660 intoxicated; and 661 (c) serving alcoholic beverages to minors. 662 [(110)] (111) "Restaurant" means a business location: 663 (a) at which a variety of foods are prepared; 664 (b) at which complete meals are served; and 665 (c) that is engaged primarily in serving meals. 666 [(111)] (112) "Restaurant license" means one of the following licenses issued under this title: 667 (a) a full-service restaurant license; 668 (b) a limited-service restaurant license; or 669 (c) a beer-only restaurant license. 670 [(112)] (113) "Restaurant venue" means a room within a restaurant that: 671 (a) is located on the licensed premises of a restaurant licensee; 672 (b) is separated from the area within the restaurant for a patron's consumption of food by 673 a permanent, opaque, floor-to-ceiling wall such that the inside of the room is not - 20 - Enrolled Copy S.B. 328 674 visible to a patron in the area within the restaurant for a patron's consumption of 675 food; and 676 (c)(i) has at least 1,000 square feet that: 677 (A) may be reserved for a banquet; and 678 (B) accommodates at least 75 individuals; or 679 (ii) if the restaurant is located in a small or unincorporated locality, has an 680 appropriate amount of space, as determined by the commission, that may be 681 reserved for a banquet. 682 [(113)] (114) "Retail license" means one of the following licenses issued under this title: 683 (a) a full-service restaurant license; 684 (b) a master full-service restaurant license; 685 (c) a limited-service restaurant license; 686 (d) a master limited-service restaurant license; 687 (e) a bar establishment license; 688 (f) an airport lounge license; 689 (g) an on-premise banquet license; 690 (h) an on-premise beer license; 691 (i) a reception center license; 692 (j) a beer-only restaurant license; 693 (k) a hospitality amenity license; 694 (l) a resort license; 695 (m) a hotel license; or 696 (n) an arena license. 697 [(114)] (115) "Room service" means furnishing an alcoholic product to a person in a guest 698 room or privately owned dwelling unit of a: 699 (a) hotel; or 700 (b) resort facility. 701 [(115)] (116)(a) "School" means a building in which any part is used for more than three 702 hours each weekday during a school year as a public or private: 703 (i) elementary school; 704 (ii) secondary school; or 705 (iii) kindergarten. 706 (b) "School" does not include: 707 (i) a nursery school; - 21 - S.B. 328 Enrolled Copy 708 (ii) a day care center; 709 (iii) a trade and technical school; 710 (iv) a preschool; 711 (v) a home school; 712 (vi) a home-based microschool as defined in Section 53G-6-201; or 713 (vii) a micro-education entity as defined in Section 53G-6-201. 714 [(116)] (117) "Secondary flavoring ingredient" means any spirituous liquor added to a 715 beverage for additional flavoring that is different in type, flavor, or brand from the 716 primary spirituous liquor in the beverage. 717 [(117)] (118) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby, for 718 consideration, an alcoholic product is either directly or indirectly transferred, solicited, 719 ordered, delivered for value, or by a means or under a pretext is promised or obtained, 720 whether done by a person as a principal, proprietor, or as staff, unless otherwise defined 721 in this title or the rules made by the commission. 722 [(118)] (119) "Serve" means to place an alcoholic product before an individual. 723 [(119)] (120) "Sexually oriented entertainer" means a person who while in a state of 724 seminudity appears at or performs: 725 (a) for the entertainment of one or more patrons; 726 (b) on the premises of: 727 (i) a bar licensee; or 728 (ii) a tavern; 729 (c) on behalf of or at the request of the licensee described in Subsection [(119)(b)] 730 (120)(b); 731 (d) on a contractual or voluntary basis; and 732 (e) whether or not the person is designated as: 733 (i) an employee; 734 (ii) an independent contractor; 735 (iii) an agent of the licensee; or 736 (iv) a different type of classification. 737 [(120)] (121) "Shared seating area" means the licensed premises of two or more restaurant 738 licensees that the restaurant licensees share as an area for alcoholic beverage 739 consumption in accordance with Subsection 32B-5-207(3). 740 [(121)] (122) "Single event permit" means a permit issued in accordance with Chapter 9, 741 Part 3, Single Event Permit. - 22 - Enrolled Copy S.B. 328 742 [(122)] (123) "Small brewer" means a brewer who manufactures less than 60,000 barrels of 743 beer, heavy beer, and flavored malt beverage per year, as the department calculates by: 744 (a) if the brewer is part of a controlled group of manufacturers, including the combined 745 volume totals of production for all breweries that constitute the controlled group of 746 manufacturers; and 747 (b) excluding beer, heavy beer, or flavored malt beverage the brewer: 748 (i) manufactures that is unfit for consumption as, or in, a beverage, as the commission 749 determines by rule made in accordance with Title 63G, Chapter 3, Utah 750 Administrative Rulemaking Act; and 751 (ii) does not sell for consumption as, or in, a beverage. 752 [(123)] (124) "Small or unincorporated locality" means: 753 (a) a city of the third, fourth, or fifth class, as classified under Section 10-2-301; 754 (b) a town, as classified under Section 10-2-301; or 755 (c) an unincorporated area in a county of the third, fourth, or fifth class, as classified 756 under Section 17-50-501. 757 [(124)] (125) "Spa sublicense" means a sublicense: 758 (a) to a resort license or hotel license; and 759 (b) that the commission issues in accordance with Chapter 8d, Part 2, Resort Spa 760 Sublicense. 761 [(125)] (126) "Special use permit" means a permit issued in accordance with Chapter 10, 762 Special Use Permit Act. 763 [(126)] (127)(a) "Spirituous liquor" means liquor that is distilled. 764 (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by 27 765 U.S.C. Sec. 211 and 27 C.F.R. [Sec] Secs. 5.11 through 5.23. 766 [(127)] (128) "Sports center" is as defined by the commission by rule. 767 [(128)] (129)(a) "Staff" means an individual who engages in activity governed by this 768 title: 769 (i) on behalf of a business, including a package agent, licensee, permittee, or 770 certificate holder; 771 (ii) at the request of the business, including a package agent, licensee, permittee, or 772 certificate holder; or 773 (iii) under the authority of the business, including a package agent, licensee, 774 permittee, or certificate holder. 775 (b) "Staff" includes: - 23 - S.B. 328 Enrolled Copy 776 (i) an officer; 777 (ii) a director; 778 (iii) an employee; 779 (iv) personnel management; 780 (v) an agent of the licensee, including a managing agent; 781 (vi) an operator; or 782 (vii) a representative. 783 [(129)] (130) "State of nudity" means: 784 (a) the appearance of: 785 (i) the nipple or areola of a female human breast; 786 (ii) a human genital; 787 (iii) a human pubic area; or 788 (iv) a human anus; or 789 (b) a state of dress that fails to opaquely cover: 790 (i) the nipple or areola of a female human breast; 791 (ii) a human genital; 792 (iii) a human pubic area; or 793 (iv) a human anus. 794 [(130)] (131) "State of seminudity" means a state of dress in which opaque clothing covers 795 no more than: 796 (a) the nipple and areola of the female human breast in a shape and color other than the 797 natural shape and color of the nipple and areola; and 798 (b) the human genitals, pubic area, and anus: 799 (i) with no less than the following at its widest point: 800 (A) four inches coverage width in the front of the human body; and 801 (B) five inches coverage width in the back of the human body; and 802 (ii) with coverage that does not taper to less than one inch wide at the narrowest point. 803 [(131)] (132)(a) "State store" means a facility for the sale of packaged liquor: 804 (i) located on premises owned or leased by the state; and 805 (ii) operated by a state employee. 806 (b) "State store" does not include: 807 (i) a package agency; 808 (ii) a licensee; or 809 (iii) a permittee. - 24 - Enrolled Copy S.B. 328 810 [(132)] (133)(a) "Storage area" means an area on licensed premises where the licensee 811 stores an alcoholic product. 812 (b) "Store" means to place or maintain in a location an alcoholic product. 813 [(133)] (134) "Sublicense" means: 814 (a) any of the following licenses issued as a subordinate license to, and contingent on the 815 issuance of, a principal license: 816 (i) a full-service restaurant license; 817 (ii) a limited-service restaurant license; 818 (iii) a bar establishment license; 819 (iv) an on-premise banquet license; 820 (v) an on-premise beer retailer license; 821 (vi) a beer-only restaurant license; or 822 (vii) a hospitality amenity license; or 823 (b) a spa sublicense. 824 [(134)] (135) "Supplier" means a person who sells an alcoholic product to the department. 825 [(135)] (136) "Tavern" means an on-premise beer retailer who is: 826 (a) issued a license by the commission in accordance with Chapter 5, Retail License Act, 827 and Chapter 6, Part 7, On-Premise Beer Retailer License; and 828 (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7, 829 On-Premise Beer Retailer License. 830 [(136)] (137) "Temporary beer event permit" means a permit issued in accordance with 831 Chapter 9, Part 4, Temporary Beer Event Permit. 832 [(137)] (138) "Temporary domicile" means the principal place of abode within Utah of a 833 person who does not have a present intention to continue residency within Utah 834 permanently or indefinitely. 835 [(138)] (139) "Translucent" means a substance that allows light to pass through, but does not 836 allow an object or person to be seen through the substance. 837 [(139)] (140) "Unsaleable liquor merchandise" means a container that: 838 (a) is unsaleable because the container is: 839 (i) unlabeled; 840 (ii) leaky; 841 (iii) damaged; 842 (iv) difficult to open; or 843 (v) partly filled; - 25 - S.B. 328 Enrolled Copy 844 (b)(i) has faded labels or defective caps or corks; 845 (ii) has contents that are: 846 (A) cloudy; 847 (B) spoiled; or 848 (C) chemically determined to be impure; or 849 (iii) contains: 850 (A) sediment; or 851 (B) a foreign substance; or 852 (c) is otherwise considered by the department as unfit for sale. 853 [(140)] (141)(a) "Wine" means an alcoholic product obtained by the fermentation of the 854 natural sugar content of fruits, plants, honey, or milk, or other like substance, whether 855 or not another ingredient is added. 856 (b) "Wine" includes: 857 (i) an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211 and 27 C.F.R. 858 Sec. 4.10; and 859 (ii) hard cider. 860 (c) "Wine" is considered liquor for purposes of this title, except as otherwise provided in 861 this title. 862 [(141)] (142) "Winery manufacturing license" means a license issued in accordance with 863 Chapter 11, Part 3, Winery Manufacturing License. 864 Section 2. Section 32B-1-202 is amended to read: 865 32B-1-202 . Proximity to community location. 866 (1) As used in this section: 867 (a) "Designated project area zone" means the area that is: 868 (i) bounded by: 869 (A) South Temple Street; 870 (B) 100 South Street; 871 (C) West Temple Street; and 872 (D) 400 West Street; and 873 (ii) within a project area as defined in Section 63N-3-1401. 874 (b)(i) "Outlet" means: 875 (A) a state store; 876 (B) a package agency; or 877 (C) a retail licensee. - 26 - Enrolled Copy S.B. 328 878 (ii) "Outlet" does not include: 879 (A) an airport lounge licensee; or 880 (B) a restaurant. 881 (c) "Restaurant" means: 882 (i) a full-service restaurant licensee; 883 (ii) a limited-service restaurant licensee; 884 (iii) a beer-only restaurant licensee; or 885 (iv) a restaurant venue on-premise banquet licensee. 886 (2)(a) Except as otherwise provided in this section or Section 32B-1-202.1, the 887 commission may not issue a license for an outlet if, on the date the commission takes 888 final action to approve or deny the application, there is a community location: 889 (i) within 600 feet of the proposed outlet, as measured from the nearest patron 890 entrance of the proposed outlet by following the shortest route of ordinary 891 pedestrian travel to the property boundary of the community location; or 892 (ii) within 200 feet of the proposed outlet, measured in a straight line from the 893 nearest patron entrance of the proposed outlet to the nearest property boundary of 894 the community location. 895 (b) Except as otherwise provided in this section or Section 32B-1-202.1, the commission 896 may not issue a license for a restaurant if, on the date the commission takes final 897 action to approve or deny the application, there is a community location: 898 (i) within 300 feet of the proposed restaurant, as measured from the nearest patron 899 entrance of the proposed restaurant by following the shortest route of ordinary 900 pedestrian travel to the property boundary of the community location; or 901 (ii) within 200 feet of the proposed restaurant, measured in a straight line from the 902 nearest patron entrance of the proposed restaurant to the nearest property 903 boundary of the community location. 904 (3)(a) For an outlet or a restaurant that holds a license on May 9, 2017, and operates 905 under a previously approved variance to one or more proximity requirements in 906 effect before May 9, 2017, subject to the other provisions of this title, that outlet or 907 restaurant, or another outlet or restaurant with the same type of license as that outlet 908 or restaurant, may operate under the previously approved variance regardless of 909 whether: 910 (i) the outlet or restaurant changes ownership; 911 (ii) the property on which the outlet or restaurant is located changes ownership; or - 27 - S.B. 328 Enrolled Copy 912 (iii) there is a lapse in the use of the property as an outlet or a restaurant with the 913 same type of license, unless during the lapse, the property is used for a different 914 purpose. 915 (b) An outlet or a restaurant that has continuously operated at a location since before 916 January 1, 2007, is considered to have a previously approved variance. 917 (4) An outlet or restaurant that holds a license on May 12, 2020, and operates in accordance 918 with the proximity requirements in effect at the time the commission issued the license 919 or operates under a previously approved variance described in Subsection (3), subject to 920 the other provisions of this title, that outlet or restaurant or an outlet or a restaurant with 921 the same type of license as that outlet or restaurant may operate at the premises 922 regardless of whether: 923 (a) the outlet or restaurant changes ownership; 924 (b) the property on which the outlet or restaurant is located changes ownership; or 925 (c) there is a lapse of one year or less in the use of the property as an outlet or a 926 restaurant with the same type of license, unless during the lapse the property is used 927 for a different purpose. 928 (5)(a) If, after an outlet or a restaurant obtains a license under this title, a person 929 establishes a community location on a property that puts the outlet or restaurant in 930 violation of the proximity requirements in effect at the time the license is issued or a 931 previously approved variance described in Subsection (3), subject to the other 932 provisions of this title, that outlet or restaurant, or an outlet or a restaurant with the 933 same type of license as that outlet or restaurant, may operate at the premises 934 regardless of whether: 935 (i) the outlet or restaurant changes ownership; 936 (ii) the property on which the outlet or restaurant is located changes ownership; or 937 (iii) there is a lapse in the use of the property as an outlet or a restaurant with the 938 same type of license, unless during the lapse the property is used for a different 939 purpose. 940 (b) The provisions of this Subsection (5) apply regardless of when the outlet's or 941 restaurant's license is issued. 942 (6) The proximity requirements described in Subsection (2) do not apply[ ] : 943 (a) if the proposed outlet or proposed restaurant and the community location are located 944 within the boundaries of a designated project area zone[.] ; or 945 (b) if a local authority includes in the written consent of the local authority an - 28 - Enrolled Copy S.B. 328 946 acknowledgment and authorization of the outlet's or the restaurant's proximity to a 947 public park, including any connected trail system, if the public park and connected 948 trail system are: 949 (i) at least 12 acres in size; 950 (ii) on land the state owns; and 951 (iii) managed by the Point of the Mountain State Land Authority created in Section 952 11-59-201. 953 (7) Nothing in this section prevents the commission from considering the proximity of an 954 educational, religious, and recreational facility, or any other relevant factor in reaching a 955 decision on a proposed location of an outlet. 956 Section 3. Section 32B-1-407 is amended to read: 957 32B-1-407 . Verification of proof of age by applicable licensees. 958 (1) As used in this section, "applicable licensee" means: 959 (a) a dining club; 960 (b) a bar; 961 (c) a tavern; 962 (d) a full-service restaurant; 963 (e) a limited-service restaurant;[ or] 964 (f) a beer-only restaurant[. ] ; or 965 (g) an off-premise beer retailer selling, offering for sale, or furnishing beer as described 966 in Subsection 32B-7-202(8). 967 (2) Notwithstanding any other provision of this part, an applicable licensee shall require 968 that an authorized person for the applicable licensee verify proof of age as provided in 969 this section. 970 (3) An authorized person is required to verify proof of age under this section before an 971 individual who appears to be 35 years of age or younger: 972 (a) gains admittance to the premises of a bar licensee or tavern; 973 (b) procures an alcoholic product on the premises of a dining club licensee; or 974 (c) procures an alcoholic product in a dispensing area in the premises of a full-service 975 restaurant licensee, a limited-service restaurant licensee, or a beer-only restaurant 976 licensee. 977 (4) To comply with Subsection (3), an authorized person shall: 978 (a) request the individual present proof of age; and 979 (b)(i) verify the validity of the proof of age electronically under the verification - 29 - S.B. 328 Enrolled Copy 980 program created in Subsection (5); or 981 (ii) if the proof of age cannot be electronically verified as provided in Subsection 982 (4)(b)(i), request that the individual comply with a process established by the 983 commission by rule. 984 (5) The commission shall establish by rule an electronic verification program that includes 985 the following: 986 (a) the specifications for the technology used by the applicable licensee to electronically 987 verify proof of age, including that the technology display to the person described in 988 Subsection (2) no more than the following for the individual who presents the proof 989 of age: 990 (i) the name; 991 (ii) the age; 992 (iii) the number assigned to the individual's proof of age by the issuing authority; 993 (iv) the birth date; 994 (v) the gender; and 995 (vi) the status and expiration date of the individual's proof of age; and 996 (b) the security measures that shall be used by an applicable licensee to ensure that 997 information obtained under this section is: 998 (i) used by the applicable licensee only for purposes of verifying proof of age in 999 accordance with this section; and 1000 (ii) retained by the applicable licensee for seven days after the day on which the 1001 applicable licensee obtains the information. 1002 (6)(a) An applicable licensee may not disclose information obtained under this section 1003 except as provided under this title. 1004 (b) Information obtained under this section is considered a record for any purpose under 1005 Chapter 5, Part 3, Retail Licensee Operational Requirements. 1006 Section 4. Section 32B-1-603.5 is amended to read: 1007 32B-1-603.5 . Requirements for beer flavorings -- Procedure for approval -- 1008 Department review. 1009 (1) A manufacturer of a beer that contains a propylene glycol-, ethyl alcohol-, or 1010 ethanol-based flavoring agent as described in Subsection [32B-1-102(11)(b)(iii)] 1011 32B-1-102(12)(b)(iii) may not sell or distribute the beer in the state unless the 1012 manufacturer obtains: 1013 (a) the department's approval to sell or distribute the beer under this section; and - 30 - Enrolled Copy S.B. 328 1014 (b) the department's approval of the label and packaging of the beer under Sections 1015 32B-1-604 through 32B-1-606. 1016 (2)(a) To obtain approval to sell or distribute a beer that contains a propylene glycol-, 1017 ethyl alcohol-, or ethanol-based flavoring agent as described in Subsection [ 1018 32B-1-102(11)(b)(iii)] 32B-1-102(12)(b)(iii), the manufacturer of the beer shall 1019 submit an application to the department for approval. 1020 (b) The application shall require: 1021 (i) a copy of: 1022 (A) the statement of process and formula filed with the federal Alcohol and 1023 Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 for the beer; and 1024 (B) the formula approval from the federal Alcohol and Tobacco Tax and Trade 1025 Bureau for the beer; 1026 (ii) a complete list of each propylene glycol-, ethyl alcohol-, or ethanol-based 1027 flavoring agent in the beer; 1028 (iii) a description of the total amount of alcohol each propylene glycol-, ethyl 1029 alcohol-, or ethanol-based flavoring agent contributes to the beer; and 1030 (iv) other information required by the department to determine whether the beer 1031 complies with Subsection [32B-1-102(11)(b)(iii)] 32B-1-102(12)(b)(iii). 1032 (3) The department may: 1033 (a) assess a fee established under Section 63J-1-504 for reviewing an application for 1034 approval under this section; and 1035 (b) approve a manufacturer's application to sell or distribute a beer that contains a 1036 propylene glycol-, ethyl alcohol-, or ethanol-based flavoring agent after determining 1037 that the beer complies with Subsection [32B-1-102(11)(b)(iii)] 32B-1-102(12)(b)(iii). 1038 (4) If a manufacturer of a beer revises the formula for the beer that the department approved 1039 for sale or distribution, the manufacturer shall obtain the department's approval for the 1040 revised formula before selling or distributing the beer. 1041 (5)(a) The department may revoke a previous approval under this section upon 1042 determining that the beer is not in compliance with this title or the rules of the 1043 commission. 1044 (b) The department shall notify the manufacturer that applied for an approval under this 1045 section at least 30 business days before the day on which the approval is revoked. 1046 (c) Within 20 business days after the day on which a manufacturer receives the notice 1047 under Subsection (5)(b), the manufacturer may present a written argument or - 31 - S.B. 328 Enrolled Copy 1048 evidence to the department regarding why the revocation should not occur. 1049 (6)(a) A manufacturer that applies for approval under this section may appeal a denial or 1050 revocation of the approval to the commission. 1051 (b) During the period in which a manufacturer appeals a denial or revocation to the 1052 commission under Subsection (6)(a), the denial or revocation remains in force. 1053 Section 5. Section 32B-1-607 is amended to read: 1054 32B-1-607 . Rulemaking authority. 1055 (1) The commission may adopt rules necessary to implement this part. 1056 (2) Notwithstanding Subsections [32B-1-102(12)] 32B-1-102(13) and [(51)] (52), in 1057 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 1058 commission may make rules that allow for a tolerance in the alcohol content of beer or 1059 heavy beer as follows: 1060 (a) up to 0.18% above or below when measured by volume; or 1061 (b) up to 0.15% above or below when measured by weight. 1062 Section 6. Section 32B-5-201 is amended to read: 1063 32B-5-201 . Application requirements for retail license. 1064 (1)(a) Before a person may store, sell, offer for sale, furnish, or permit consumption of 1065 an alcoholic product on licensed premises as a retail licensee, the person shall first 1066 obtain a retail license issued by the commission, notwithstanding whether the person 1067 holds a local license or a permit issued by a local authority. 1068 (b) Violation of this Subsection (1) is a class B misdemeanor. 1069 (2) To obtain a retail license under this title, a person shall submit to the department: 1070 (a) a written application in a form prescribed by the department; 1071 (b) a nonrefundable application fee in the amount specified in the relevant chapter or 1072 part for the type of retail license for which the person is applying; 1073 (c) an initial license fee: 1074 (i) in the amount specified in the relevant chapter or part for the type of retail license 1075 for which the person is applying; and 1076 (ii) that is refundable if a retail license is not issued; 1077 (d) written consent of the local authority, including, if applicable, consent for each 1078 proposed sublicense; 1079 (e) a copy of: 1080 (i) every license the local authority requires, including the person's current business 1081 license; and - 32 - Enrolled Copy S.B. 328 1082 (ii) if the person is applying for a principal license, the current business license for 1083 each proposed sublicense, except if the local authority determines that the 1084 business license for a proposed sublicense is included in the person's current 1085 business license; 1086 (f) evidence of the proposed retail licensee's proximity to any community location, with 1087 proximity requirements being governed by Section 32B-1-202; 1088 (g) a bond as specified by Section 32B-5-204; 1089 (h) a floor plan, and boundary map where applicable, of the premises of the retail license 1090 and each, if any, accompanying sublicense, including any: 1091 (i) consumption area; and 1092 (ii) area where the person proposes to store, sell, offer for sale, or furnish an alcoholic 1093 beverage; 1094 (i) evidence that the retail licensee carries public liability insurance in an amount and 1095 form satisfactory to the department; 1096 (j) evidence that the retail licensee carries dramshop insurance coverage of at least: 1097 (i) $1,000,000 per occurrence and $2,000,000 in the aggregate; 1098 (ii) if the retail licensee is a hotel licensee or a resort licensee, $1,000,000 per 1099 occurrence and $2,000,000 in the aggregate to cover both the principal license and 1100 all accompanying sublicenses; or 1101 (iii) if the retail licensee is an arena licensee, $10,000,000 per occurrence and 1102 $20,000,000 in the aggregate to cover both the arena license and all accompanying 1103 sublicenses; 1104 (k) a signed consent form stating that the retail licensee will permit any authorized 1105 representative of the commission, department, or any law enforcement officer to have 1106 unrestricted right to enter: 1107 (i) the premises of the retail licensee; and 1108 (ii) if applicable, the premises of each of the retail licensee's accompanying 1109 sublicenses; 1110 (l) if the person is an entity, proper verification evidencing that a person who signs the 1111 application is authorized to sign on behalf of the entity; 1112 (m) a responsible alcohol service plan; 1113 (n) evidence that each individual the person has hired to work as a retail manager, as 1114 defined in Section 32B-1-701, has completed the alcohol training and education 1115 seminar as required under Chapter 1, Part 7, Alcohol Training and Education Act; and - 33 - S.B. 328 Enrolled Copy 1116 (o) any other information the commission or department may require. 1117 (3) The commission may not issue a retail license to a person who: 1118 (a) is disqualified under Section 32B-1-304; or 1119 (b) is not lawfully present in the United States. 1120 (4) Unless otherwise provided in the relevant chapter or part for the type of retail license for 1121 which the person is applying, the commission may not issue a retail license to a person if 1122 the proposed licensed premises does not meet the proximity requirements of Section 1123 32B-1-202. 1124 (5) [The] Subject to Subsection (6), the commission may not deny an application for a retail 1125 license, an application for a conditional retail license under Section 32B-5-205, or an 1126 application for a sublicense under Chapter 8d, Sublicense Act, if: 1127 (a) the applicant satisfies the requirements of this chapter and Chapter 6, Specific Retail 1128 License Act; and 1129 (b) for a retail license or a conditional retail license, granting the retail license or the 1130 conditional retail license would not cause the commission to exceed the maximum 1131 number of licenses of that retail license type that the commission is authorized to 1132 issue under this chapter. 1133 (6)(a) The commission may deny an application for a retail license, an application for a 1134 conditional retail license under Section 32B-5-205, or an application for a sublicense 1135 under Chapter 8d, Sublicense Act, if the commission determines that the applicant's 1136 violation history warrants the denial. 1137 (b) The commission, when making a determination under this Subsection (6), shall treat 1138 applicants with substantially similar violation histories consistently. 1139 Section 7. Section 32B-5-304 is amended to read: 1140 32B-5-304 . Portions in which alcoholic product may be sold. 1141 (1)(a) A retail licensee may sell, offer for sale, or furnish spirituous liquor that is a 1142 primary spirituous liquor only in a quantity that does not exceed 1.5 ounces per 1143 beverage dispensed through a calibrated metered dispensing system approved by the 1144 department in accordance with commission rules adopted under this title. 1145 (b) A retail license is not required to dispense spirituous liquor through a calibrated 1146 metered dispensing system if the spirituous liquor is: 1147 (i) a secondary flavoring ingredient; 1148 (ii) used as a flavoring on a dessert; 1149 (iii) used to set aflame a food dish, drink, or dessert;[ or] - 34 - Enrolled Copy S.B. 328 1150 (iv) in a beverage that: 1151 (A) is served to a patron in the original, sealed container; 1152 (B) is not more than 12 ounces; 1153 (C) contains no more than 10% alcohol by volume or 8% by weight; and 1154 (D) is in a container that has the alcohol by volume percentage on the front label 1155 and in a font that measures at least three millimeters high[.] ; or 1156 (v) in a beverage that: 1157 (A) is served to a patron by pouring the beverage from the original sealed 1158 container, into a different container as required under Subsection 1159 32B-8d-104(5)(b); 1160 (B) is not more than 12 ounces; 1161 (C) contains no more than 10% alcohol by volume or 8% by weight; and 1162 (D) originates from a container that has the alcohol by volume percentage on the 1163 front label and in a font that measures at least three millimeters high. 1164 (c) A retail licensee that dispenses spirituous liquor that is a secondary flavoring 1165 ingredient shall: 1166 (i) designate a location where the retail licensee stores secondary flavoring 1167 ingredients on the floor plan the retail licensee submits to the department; and 1168 (ii) clearly and conspicuously label each secondary flavoring ingredient's container 1169 "flavorings". 1170 (d)(i) A patron may have no more than 2.5 ounces of spirituous liquor at a time. 1171 (ii) Subsection (1)(d)(i) does not apply to a beverage described in Subsection 1172 (1)(b)(iv). 1173 (2)(a)(i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an 1174 individual portion that does not exceed 5 ounces per glass or individual portion. 1175 (ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine 1176 to a patron in more than one glass if the total amount of wine does not exceed 5 1177 ounces. 1178 (b)(i) A retail licensee may sell, offer for sale, or furnish wine in a container not 1179 exceeding 1.5 liters at a price fixed by the commission to a table of four or more 1180 persons. 1181 (ii) A retail licensee may sell, offer for sale, or furnish wine in a container not to 1182 exceed 750 milliliters at a price fixed by the commission to a table of less than 1183 four persons. - 35 - S.B. 328 Enrolled Copy 1184 (c) Notwithstanding Subsections (2)(a) and (b), a retail licensee may sell, offer for sale, 1185 or furnish hard cider that contains no more than 5% of alcohol by volume in a sealed 1186 container not to exceed 16 ounces. 1187 (3) A retail licensee may sell, offer for sale, or furnish heavy beer in an original container at 1188 a price fixed by the commission, except that the original container may not exceed one 1189 liter. 1190 (4) A retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an 1191 original container at a price fixed by the commission, except that the original container 1192 may not exceed one liter. 1193 (5)(a)(i) Subject to Subsection (5)(a)(ii), a retail licensee may sell, offer for sale, or 1194 furnish beer for on-premise consumption: 1195 (A) in an open original container; and 1196 (B) in a container on draft. 1197 (ii) A retail licensee may not sell, offer for sale, or furnish beer under Subsection 1198 (5)(a)(i): 1199 (A) in a size of container that exceeds two liters; or 1200 (B) to an individual patron in a size of container that exceeds one liter. 1201 (b) A retail licensee may sell, offer for sale, or furnish beer for off-premise consumption: 1202 (i) in a sealed container; and 1203 (ii) in a size of container that does not exceed two liters. 1204 (c) A retail licensee may sell, offer for sale, or furnish a flight of beer to an individual 1205 patron if the total amount of beer does not exceed 16 ounces. 1206 Section 8. Section 32B-5-307 is amended to read: 1207 32B-5-307 . Bringing alcoholic product onto or removing alcoholic product from 1208 premises. 1209 (1) Except as provided in Subsections (3)[ and] , (4), and (6): 1210 (a) [a person ] an individual may not bring onto the licensed premises of a retail licensee 1211 an alcoholic product for on-premise consumption; 1212 (b) a retail licensee may not allow a person to: 1213 (i) bring onto licensed premises an alcoholic product for on-premise consumption; or 1214 (ii) consume an alcoholic product brought onto the licensed premises by a person 1215 other than the retail licensee; and 1216 (c) a retail licensee may not sell, offer for sale, or furnish an alcoholic product through a 1217 window or door to a location off the licensed premises or to a vehicular traffic area. - 36 - Enrolled Copy S.B. 328 1218 (2) Except as provided in Subsections (3)[ and] , (4), and (6) and Subsection 32B-4-415(5): 1219 (a) [a person ] an individual may not carry from the licensed premises of a retail licensee 1220 an open container that: 1221 (i) is used primarily for drinking purposes; and 1222 (ii) contains an alcoholic product; 1223 (b) a retail licensee may not permit a patron to carry from the licensed premises an open 1224 container described in Subsection (2)(a); and 1225 (c)(i) [a person ] an individual may not carry from the licensed premises of a retail 1226 licensee a sealed container of liquor that has been purchased from the retail 1227 licensee; and 1228 (ii) a retail licensee may not permit a patron to carry from the licensed premises of 1229 the retail licensee a sealed container of liquor that has been purchased from the 1230 retail licensee. 1231 (3)(a) A patron may bring a bottled wine onto the premises of a retail licensee for 1232 on-premise consumption if: 1233 (i) permitted by the retail licensee; and 1234 (ii) the retail licensee is authorized to sell, offer for sale, or furnish wine. 1235 (b) If a patron carries bottled wine onto the licensed premises of a retail licensee, the 1236 patron shall deliver the bottled wine to a server or other representative of the retail 1237 licensee upon entering the licensed premises. 1238 (c) A retail licensee authorized to sell, offer for sale, or furnish wine, may provide a 1239 wine service for a bottled wine carried onto the licensed premises in accordance with 1240 this Subsection (3) or a bottled wine purchased at the licensed premises. 1241 (d) A patron may remove from a licensed premises the unconsumed contents of a bottle 1242 of wine purchased at the licensed premises, or brought onto the licensed premises in 1243 accordance with this Subsection (3), only if before removal the bottle is recorked or 1244 recapped. 1245 (4) Neither a patron nor a retail licensee violates this section if: 1246 (a) the patron is in shared seating; and 1247 (b) the patron purchased the patron's alcoholic beverage from a restaurant licensee 1248 whose licensed premises include the shared seating area the patron is in. 1249 (5)(a) A patron may carry from a retail licensee's licensed premises a sealed container of 1250 beer that has been purchased from the retail licensee. 1251 (b) A retail licensee may permit a patron to carry from the retail licensee's licensed - 37 - S.B. 328 Enrolled Copy 1252 premises a sealed container of beer that has been purchased from the retail licensee. 1253 (6) A patron may transport beer between the licensed areas of a facility with both an 1254 on-premise beer retailer license and an on-premise banquet license if the patron 1255 transports the beer to and from an area of each licensed premises: 1256 (a) if the premises are contiguous; and 1257 (b) where the consumption of beer is permitted. 1258 Section 9. Section 32B-5-308 is amended to read: 1259 32B-5-308 . Requirements on staff or others on premises -- Employing a minor. 1260 (1) As used in this section, "straw test" means a technique used by staff of a retail licensee 1261 to taste liquor to ensure the quality, flavor, and alcohol content of the liquor by: 1262 (a) dipping the straw into the liquor; 1263 (b) removing the straw in a manner that a small amount of liquor remains in the straw; 1264 and 1265 (c) tasting the small amount of liquor from the straw. 1266 [(1)] (2) [Staff] Except as provided in Subsection (5), staff of a retail licensee, while on duty, 1267 may not: 1268 (a) consume an alcoholic product; or 1269 (b) be intoxicated. 1270 [(2)] (3)(a) A retail licensee may not employ a minor to sell, offer for sale, furnish, or 1271 dispense an alcoholic product. 1272 (b) Notwithstanding Subsection [(2)(a)] (3)(a), unless otherwise prohibited in the 1273 provisions related to the specific type of retail license, a retail licensee may employ a 1274 minor who is at least 16 years [of age] old to enter the sale at a cash register or other 1275 sales recording device. 1276 [(3)] (4) A full-service restaurant licensee, limited-service restaurant licensee, or beer-only 1277 restaurant licensee may employ a minor who is at least 16 years [of age] old to bus 1278 tables, including containers that contain an alcoholic product. 1279 (5) A staff member of a retail licensee may conduct a straw test if the staff member is not a 1280 minor. 1281 Section 10. Section 32B-6-403 is amended to read: 1282 32B-6-403 . Commission's power to issue bar establishment license. 1283 (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of an 1284 alcoholic product on the person's premises as a bar establishment licensee, the person 1285 shall first obtain a bar establishment license from the commission in accordance with - 38 - Enrolled Copy S.B. 328 1286 this part. 1287 (2) The commission may issue a bar establishment license to establish bar establishment 1288 licensed premises at places and in numbers the commission considers proper for the 1289 storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on 1290 premises operated by a bar establishment licensee. 1291 (3) Subject to Section 32B-1-201: 1292 (a) the commission may not issue a total number of bar establishment licenses that at 1293 any time exceeds the sum of: 1294 (i) 15; and 1295 (ii) the number determined by dividing the population of the state by: 1296 (A) before fiscal July 1, 2024, 10,200; 1297 (B) in fiscal year 2025, 9,778; 1298 (C) in fiscal year 2026, 9,356; 1299 (D) in fiscal year 2027, 8,934; 1300 (E) in fiscal year 2028, 8,512; 1301 (F) in fiscal year 2029, 8,090; 1302 (G) in fiscal year 2030, 7,668; and 1303 (H) in fiscal year 2031, and in each fiscal year thereafter, 7,246; 1304 (b) the commission may issue a seasonal bar establishment license in accordance with 1305 Section 32B-5-206 to a bar licensee; 1306 (c) the commission may authorize as many as three bar establishment license locations 1307 within a hotel under one bar establishment license if: 1308 (i) the location, design, and construction of the hotel requires more than one bar 1309 license location within the hotel to serve the public convenience; 1310 (ii) the hotel has a minimum of 150 guest rooms; 1311 (iii) all locations under the bar establishment license are: 1312 (A) within the same hotel; and 1313 (B) on premises that are managed or operated, and owned or leased, by the bar 1314 establishment licensee; 1315 (d) the commission may authorize up to five dispensing locations under one equity 1316 license if the locations under the equity license: 1317 [(i) are connected by a private roadway to which the equity licensee, each member of 1318 the equity licensee, and each guest has a legal right of access; and] 1319 [(ii)] (i) are located on premises managed or operated, and owned or leased, by the - 39 - S.B. 328 Enrolled Copy 1320 equity licensee; 1321 (ii) the locations are under the same leadership or management; and 1322 (iii) an individual who is a member of at least one location that the equity licensee 1323 operates has access to all locations the equity licensee operates; 1324 (e) except for a facility operating in accordance with Subsection (3)(d) or a hotel, a 1325 facility shall have a separate bar establishment license for each bar establishment 1326 license location where an alcoholic product is sold, offered for sale, or furnished; 1327 (f) when a business establishment undergoes a change of ownership, the commission 1328 may issue a bar establishment license to the new owner of the business establishment 1329 notwithstanding that there is no bar establishment license available under Subsection 1330 (3)(a) if: 1331 (i) the primary business activity at the business establishment before and after the 1332 change of ownership is not the sale, offer for sale, or furnishing of an alcoholic 1333 product; 1334 (ii) before the change of ownership there are two or more licensed premises on the 1335 business establishment that operate under a retail license, with at least one of the 1336 retail licenses being a bar establishment license; 1337 (iii) subject to Subsection (3)(g) the licensed premises of the bar establishment 1338 license issued under this Subsection (3)(f) is at the same location where the bar 1339 establishment license licensed premises was located before the change of 1340 ownership; and 1341 (iv) the person who is the new owner of the business establishment qualifies for the 1342 bar establishment license, except for there being no bar establishment license 1343 available under Subsection (3)(a); and 1344 (g) if a bar establishment licensee of a bar establishment license issued under Subsection 1345 (3)(f) requests a change of location, the bar establishment licensee may retain the bar 1346 establishment license after the change of location only if on the day on which the bar 1347 establishment licensee seeks a change of location a bar establishment license is 1348 available under Subsection (3)(a). 1349 Section 11. Section 32B-6-603 is amended to read: 1350 32B-6-603 . Commission's power to issue on-premise banquet license -- Contracts 1351 as host. 1352 (1)(a) Before a person may store, sell, offer for sale, furnish, or allow the consumption 1353 of an alcoholic product in connection with the person's banquet and room service - 40 - Enrolled Copy S.B. 328 1354 activities at one of the following, the person shall first obtain an on-premise banquet 1355 license in accordance with this part: 1356 (i) a hotel; 1357 (ii) a resort facility; 1358 (iii) a sports center; 1359 (iv) a convention center; 1360 (v) a performing arts facility; 1361 (vi) an arena;[ or] 1362 (vii) a restaurant venue[.] ; or 1363 (viii) an amphitheater. 1364 (b) This part does not prohibit an alcoholic product on the premises of a person listed in 1365 Subsection (1)(a) to the extent otherwise permitted by this title. 1366 (c) This section does not prohibit a person who applies for an on-premise banquet 1367 license to also apply for a package agency if otherwise qualified. 1368 (2) The commission may issue an on-premise banquet license to establish on-premise 1369 banquet licensees in the numbers the commission considers proper for the storage, sale, 1370 offer for sale, furnishing, and consumption of an alcoholic product at a banquet or as 1371 part of room service activities operated by an on-premise banquet licensee. 1372 (3) Subject to Section 32B-1-201, the commission: 1373 (a) may not issue a total number of restaurant venue on-premise banquet licenses that at 1374 any time exceeds 25; and 1375 (b) may not issue a total number of on-premise banquet licenses that at any time exceeds 1376 the number determined by dividing the population of the state by 28,765. 1377 (4) Pursuant to a contract between the host of a banquet and an on-premise banquet licensee: 1378 (a) the host of the banquet may request an on-premise banquet licensee to provide an 1379 alcoholic product served at the banquet; and 1380 (b) an on-premise banquet licensee may provide an alcoholic product served at the 1381 banquet. 1382 (5) At a banquet, an on-premise banquet licensee may furnish an alcoholic product: 1383 (a) without charge to a patron at a banquet, except that the host of the banquet shall pay 1384 for an alcoholic product furnished at the banquet; or 1385 (b) with a charge to a patron at the banquet. 1386 (6) To be licensed as an on-premise banquet, a person shall maintain at least 50% of the 1387 person's total annual banquet gross receipts from the sale of food, which does not - 41 - S.B. 328 Enrolled Copy 1388 include: 1389 (a) mix for an alcoholic product; or 1390 (b) a charge in connection with the furnishing of an alcoholic product. 1391 Section 12. Section 32B-6-604 is amended to read: 1392 32B-6-604 . Specific licensing requirements for an on-premise banquet license. 1393 (1) To obtain an on-premise banquet license a person shall comply with Chapter 5, Part 2, 1394 Retail Licensing Process. 1395 (2)(a) An on-premise banquet license expires on October 31 of each year. 1396 (b) To renew a person's on-premise banquet license, a person shall comply with the 1397 requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than 1398 September 30. 1399 (3)(a) The nonrefundable application fee for an on-premise banquet license is $300. 1400 (b)(i) The initial license fee for an on-premise banquet license is $750. 1401 (ii) The department shall prorate the $750 initial license fee for the period that begins 1402 the day on which the initial license fee is paid and ends the day on which the 1403 on-premise banquet license expires. 1404 (c) The renewal fee for an on-premise banquet license is $750. 1405 (4) The bond amount required for an on-premise banquet license is the penal sum of 1406 $10,000. 1407 (5) Notwithstanding the other provisions of this part, if an applicant is a state agency or 1408 political subdivision of the state it is not required to: 1409 (a) pay an application fee, initial license fee, or renewal fee; 1410 (b) obtain the written consent of the local authority; 1411 (c) submit a copy of the applicant's current business license; or 1412 (d) post a bond as specified by Section 32B-5-204. 1413 (6) Notwithstanding Subsection 32B-5-303(3), the department may approve [an additional 1414 location] one or more additional locations in accordance with Subsection (7), in or on the 1415 licensed premises of an on-premise banquet licensee from which the on-premise banquet 1416 licensee may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic 1417 product that is not included in its original application only: 1418 (a) upon proper application by an on-premise banquet licensee; and 1419 (b) in accordance with guidelines approved by the commission. 1420 (7) The department may approve one or more additional locations under Subsection (6), 1421 whether or not the locations are contiguous to one another or to the location included in - 42 - Enrolled Copy S.B. 328 1422 the original application for the on-premise banquet licensee. 1423 Section 13. Section 32B-6-605 is amended to read: 1424 32B-6-605 . Specific operational requirements for on-premise banquet license. 1425 (1)(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational 1426 Requirements, an on-premise banquet licensee and staff of the on-premise banquet 1427 licensee shall comply with this section. 1428 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action 1429 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against: 1430 (i) an on-premise banquet licensee; 1431 (ii) individual staff of an on-premise banquet licensee; or 1432 (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee. 1433 (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301(4) and (5) 1434 for the entire premises of the hotel, resort facility, sports center, convention center, 1435 performing arts facility, arena, [or ]restaurant venue, or amphitheater that is the basis for 1436 the on-premise banquet license. 1437 (3)(a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee 1438 shall provide the department with advance notice of a scheduled banquet in 1439 accordance with rules made by the commission. 1440 (b) Any of the following may conduct a random inspection of a banquet: 1441 (i) an authorized representative of the commission or the department; or 1442 (ii) a law enforcement officer. 1443 (4)(a) An on-premise banquet licensee is not subject to Subsection 32B-5-302(1), but 1444 shall make and maintain the records described in Subsection 32B-5-302(2) and the 1445 records the commission or department requires. 1446 (b) Section 32B-1-205 applies to a record required to be made or maintained in 1447 accordance with this Subsection (4). 1448 (5)(a) Except as otherwise provided in this title, an on-premise banquet licensee may 1449 sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption 1450 at the location of the banquet. 1451 (b) Notwithstanding Section 32B-5-307 and except as otherwise provided in this title: 1452 (i) a person at a banquet other than the on-premise banquet licensee or staff of the 1453 on-premise banquet licensee, may not remove an alcoholic product from the 1454 premises of the banquet; and 1455 (ii) a patron at a banquet may not bring an alcoholic product into or onto the premises - 43 - S.B. 328 Enrolled Copy 1456 of the banquet. 1457 (6)(a) An on-premise banquet licensee may not leave an unsold alcoholic product at the 1458 banquet following the conclusion of the banquet. 1459 (b) At the conclusion of a banquet, an on-premise banquet licensee shall: 1460 (i) destroy an opened and unused alcoholic product that is not saleable, under 1461 conditions established by the department; and 1462 (ii) return to the on-premise banquet licensee's approved locked storage area any: 1463 (A) opened and unused alcoholic product that is saleable; and 1464 (B) unopened container of an alcoholic product. 1465 (c) Except as provided in Subsection (6)(b) with regard to an open or sealed container of 1466 an alcoholic product not sold or consumed at a banquet, an on-premise banquet 1467 licensee: 1468 (i) shall store the alcoholic product in the on-premise banquet licensee's approved 1469 locked storage area; and 1470 (ii) may use the alcoholic product at more than one banquet. 1471 (7) Notwithstanding Section 32B-5-308, an on-premise banquet licensee may not employ a 1472 minor to sell, furnish, or dispense an alcoholic product in connection with the 1473 on-premise banquet licensee's banquet and room service activities. 1474 (8) An on-premise banquet licensee: 1475 (a) may provide room service in portions described in Section 32B-5-304; 1476 (b) may not sell, offer for sale, or furnish an alcoholic product at a banquet or in 1477 connection with room service any day during a period that: 1478 (i) begins at 1 a.m.; and 1479 (ii) ends at 9:59 a.m.; and 1480 (c) notwithstanding Section 32B-5-305, may provide as room service one alcoholic 1481 product free of charge per guest reservation, per guest room, if the alcoholic product: 1482 (i) is not a spirituous liquor; and 1483 (ii) is in an unopened container not to exceed 750 milliliters. 1484 (9)(a) Subject to the other provisions of this Subsection (9), a patron may not have more 1485 than two alcoholic products of any kind at a time before the patron. 1486 (b) A patron may not have more than one spirituous liquor drink at a time before the 1487 patron. 1488 (c) An individual portion of wine is considered to be one alcoholic product under 1489 Subsection (9)(a). - 44 - Enrolled Copy S.B. 328 1490 (10)(a) An on-premise banquet licensee shall supervise and direct a person involved in 1491 the sale, offer for sale, or furnishing of an alcoholic product. 1492 (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product 1493 shall complete an alcohol training and education seminar. 1494 (11) A staff person of an on-premise banquet licensee shall remain at the banquet at all 1495 times when an alcoholic product is sold, offered for sale, furnished, or consumed at the 1496 banquet. 1497 (12)(a) Room service of an alcoholic product to a guest room or privately owned 1498 dwelling unit of a hotel or resort facility shall be provided in person by staff of an 1499 on-premise banquet licensee only to an adult guest in the guest room or privately 1500 owned dwelling unit. 1501 (b) An alcoholic product may not be left outside a guest room or privately owned 1502 dwelling unit for retrieval by a guest or resident. 1503 (13) An on-premise banquet licensee may not maintain a minibar. 1504 Section 14. Section 32B-6-702 is amended to read: 1505 32B-6-702 . Definitions. 1506 As used in this part: 1507 (1) "Commission-approved activity" means a leisure activity that: 1508 (a) the commission approves by rule made in accordance with Title 63G, Chapter 3, 1509 Utah Administrative Rulemaking Act; and 1510 (b) does not involve the use of a dangerous weapon. 1511 (2)(a) "Recreational amenity" means: 1512 (i) a billiard parlor; 1513 (ii) a pool parlor; 1514 (iii) a bowling facility; 1515 (iv) a golf course; 1516 (v) miniature golf; 1517 (vi) a golf driving range; 1518 (vii) a tennis club; 1519 (viii) a sports facility that hosts professional sporting events and has a seating 1520 capacity equal to or greater than [5,000] 2,500; 1521 (ix) a concert venue that has a seating capacity equal to or greater than [5,000] 2,500; 1522 (x) one of the following if owned by a government agency: 1523 (A) a convention center; - 45 - S.B. 328 Enrolled Copy 1524 (B) a fair facility; 1525 (C) an equestrian park; 1526 (D) a theater; or 1527 (E) a concert venue; 1528 (xi) an amusement park: 1529 (A) with one or more permanent amusement rides; and 1530 (B) located on at least 50 acres; 1531 (xii) a ski resort; 1532 (xiii) a venue for live entertainment if the venue: 1533 (A) is not regularly open for more than five hours on any day; 1534 (B) is operated so that food is available whenever beer is sold, offered for sale, or 1535 furnished at the venue; and 1536 (C) is operated so that no more than 15% of its total annual receipts are from the 1537 sale of beer; 1538 (xiv) concessions operated within the boundary of a park administered by the: 1539 (A) Division of State Parks; or 1540 (B) National Parks Service; 1541 (xv) a facility or venue that is a recreational amenity for a person licensed under this 1542 part before May 12, 2020; 1543 (xvi) a venue for karaoke; or 1544 (xvii) an enterprise developed around a commission-approved activity. 1545 (b) "Recreational amenity" does not include an item described in Subsection (2)(a), if 1546 the item is tangential to an enterprise or activity that is not included in Subsection 1547 (2)(a). 1548 Section 15. Section 32B-7-202 is amended to read: 1549 32B-7-202 . General operational requirements for off-premise beer retailer. 1550 (1)(a) An off-premise beer retailer or staff of the off-premise beer retailer shall comply 1551 with the provisions of this title and any applicable rules made by the commission. 1552 (b) Failure to comply with this section may result in a suspension or revocation of a 1553 local license and, on or after July 1, 2018, disciplinary action in accordance with 1554 Chapter 3, Disciplinary Actions and Enforcement Act. 1555 (2)(a)(i) An off-premise beer retailer may not purchase, acquire, possess for the 1556 purpose of resale, or sell beer, except beer that the off-premise beer retailer 1557 lawfully purchases from: - 46 - Enrolled Copy S.B. 328 1558 (A) a beer wholesaler licensee; or 1559 (B) a small brewer that manufactures the beer. 1560 (ii) A violation of Subsection (2)(a) is a class A misdemeanor. 1561 (b)(i) If an off-premise beer retailer purchases beer under this Subsection (2) from a 1562 beer wholesaler licensee, the off-premise beer retailer shall purchase beer only 1563 from a beer wholesaler licensee who is designated by the manufacturer to sell beer 1564 in the geographical area in which the off-premise beer retailer is located, unless an 1565 alternate wholesaler is authorized by the department to sell to the off-premise beer 1566 retailer as provided in Section 32B-13-301. 1567 (ii) A violation of Subsection (2)(b) is a class B misdemeanor. 1568 (3) An off-premise beer retailer may not possess, sell, offer for sale, or furnish beer in a 1569 container larger than two liters. 1570 (4)(a) Staff of an off-premise beer retailer, while on duty, may not: 1571 (i) consume an alcoholic product; or 1572 (ii) be intoxicated. 1573 (b) A minor may not sell beer on the licensed premises of an off-premise beer retailer 1574 unless: 1575 (i) the sale is done under the supervision of a person 21 years old or older who is on 1576 the licensed premises; and 1577 (ii) the minor is at least 16 years old. 1578 (5) An off-premise beer retailer may not sell, offer for sale, or furnish an alcoholic product 1579 to: 1580 (a) a minor; 1581 (b) a person actually, apparently, or obviously intoxicated; 1582 (c) a known interdicted person; or 1583 (d) a known habitual drunkard. 1584 (6)(a) Subject to the other provisions of this Subsection (6), an off-premise beer retailer 1585 shall: 1586 (i) display all beer accessible by and visible to a patron in no more than two locations 1587 on the retail sales floor, each of which is: 1588 (A) a display cabinet, cooler, aisle, floor display, or room where beer is the only 1589 beverage displayed; and 1590 (B) not adjacent to a display of nonalcoholic beverages, unless the location is a 1591 cooler with a door from which the nonalcoholic beverages are not accessible, - 47 - S.B. 328 Enrolled Copy 1592 or the beer is separated from the display of nonalcoholic beverages by a display 1593 of one or more nonbeverage products or another physical divider; and 1594 (ii) display a sign in the area described in Subsection (6)(a)(i) that: 1595 (A) is prominent; 1596 (B) is easily readable by a consumer; 1597 (C) meets the requirements for format established by the commission by rule; and 1598 (D) reads in print that is no smaller than .5 inches, bold type, "These beverages 1599 contain alcohol. Please read the label carefully." 1600 (b) Notwithstanding Subsection (6)(a), a nonalcoholic beer may be displayed with beer 1601 if the nonalcoholic beer is labeled, packaged, or advertised as a nonalcoholic beer. 1602 (c) The requirements of this Subsection (6) apply to beer notwithstanding that it is 1603 labeled, packaged, or advertised as: 1604 (i) a malt cooler; or 1605 (ii) a beverage that may provide energy. 1606 (d) A violation of this Subsection (6) is an infraction. 1607 (e)(i) Except as provided in Subsection (6)(e)(ii), the provisions of Subsection 1608 (6)(a)(i) apply on and after May 9, 2017. 1609 (ii) For a beer retailer that operates two or more off-premise beer retailers, the 1610 provisions of Subsection (6)(a)(i) apply on and after August 1, 2017. 1611 (7)(a) Staff of an off-premise beer retailer who directly supervises the sale of beer or 1612 who sells beer to a patron for consumption off the premises of the off-premise beer 1613 retailer shall wear a unique identification badge: 1614 (i) on the front of the staff's clothing; 1615 (ii) visible above the waist; 1616 (iii) bearing the staff's: 1617 (A) first or last name; 1618 (B) initials; or 1619 (C) unique identification in letters or numbers; and 1620 (iv) with the number or letters on the unique identification badge being sufficiently 1621 large to be clearly visible and identifiable while engaging in or directly 1622 supervising the retail sale of beer. 1623 (b) An off-premise beer retailer shall make and maintain a record of each current staff's 1624 unique identification badge assigned by the off-premise beer retailer that includes the 1625 staff's: - 48 - Enrolled Copy S.B. 328 1626 (i) full name; 1627 (ii) address; and 1628 (iii)(A) driver license number; or 1629 (B) similar identification number. 1630 (c) An off-premise beer retailer shall make available a record required to be made or 1631 maintained under this Subsection (7) for immediate inspection by: 1632 (i) a peace officer; 1633 (ii) a representative of the local authority that issues the off-premise beer retailer 1634 license; or 1635 (iii) for an off-premise beer retailer state license, a representative of the commission 1636 or department. 1637 (d) A local authority may impose a fine of up to $250 against an off-premise beer 1638 retailer that does not comply or require its staff to comply with this Subsection (7). 1639 [(8)(a) An off-premise beer retailer may sell, offer for sale, or furnish beer through a 1640 drive through window. ] 1641 [(b) Subsection (8)(a) does not modify the display limitations and requirements 1642 described in Subsection (6).] 1643 (8)(a) An off-premise beer retailer may sell, offer for sale, or furnish beer: 1644 (i) at a drive-through window; 1645 (ii) at a drive-up loading area, if the drive-up loading area is contiguous to the 1646 off-premise beer retailer's licensed premises; or 1647 (iii) subject to Subsection (8)(b), at a designated parking stall. 1648 (b)(i) An off-premise beer retailer shall ensure that a parking stall described in 1649 Subsection (8)(a)(iii) is: 1650 (A) located on property that the off-premise beer retailer owns or has a legal right 1651 to occupy; 1652 (B) designated for picking up pre-ordered items from the off-premise beer retailer; 1653 and 1654 (C) labeled in a conspicuous manner that communicates the purpose described in 1655 Subsection (8)(b)(ii). 1656 (ii) An off-premise beer retailer may not sell, offer for sale, or furnish beer at a 1657 designated parking stall described in Subsection (8)(a)(iii) unless: 1658 (A) the off-premise beer retailer ensures that the individual purchasing the beer 1659 purchases the beer before parking in the designated parking stall; - 49 - S.B. 328 Enrolled Copy 1660 (B) the off-premise beer retailer delivers the beer directly from the off-premise 1661 beer retailer's licensed premises to the designated parking stall; 1662 (C) at the designated parking stall, staff of the off-premise beer retailer verifies the 1663 purchaser's age in accordance with Section 32B-1-407; and 1664 (D) the off-premise beer retailer maintains video surveillance of the designated 1665 parking stall. 1666 (c) Nothing in this Subsection (8) modifies the other requirements of this section. 1667 (d) Staff of an off-premise beer retailer that sells, offers for sale, or furnishes beer in 1668 accordance with this Subsection (8) shall comply with the training requirements 1669 described in Section 32B-1-703. 1670 (9) An off-premise beer retailer may not on the licensed premises: 1671 (a) engage in or permit any form of: 1672 (i) gambling, as defined in Section 76-10-1101; or 1673 (ii) fringe gambling, as defined in Section 76-10-1101; 1674 (b) have any fringe gaming device, video gaming device, or gambling device or record 1675 as defined in Section 76-10-1101; or 1676 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires 1677 the risking of something of value for a return or for an outcome when the return or 1678 outcome is based upon an element of chance, excluding the playing of an amusement 1679 device that confers only an immediate and unrecorded right of replay not 1680 exchangeable for value. 1681 (10) An off-premise beer retailer may not knowingly allow a person on the licensed 1682 premises to, in violation of Title 58, Chapter 37, Utah Controlled Substances Act, or 1683 Chapter 37a, Utah Drug Paraphernalia Act: 1684 (a) sell, distribute, possess, or use a controlled substance, as defined in Section 58-37-2; 1685 or 1686 (b) use, deliver, or possess, with the intent to deliver, drug paraphernalia, as defined in 1687 Section 58-37a-3. 1688 (11) An off-premise beer retailer may not sell, offer for sale, or furnish a beer that is 1689 intended to be frozen and consumed in a manner other than as a beverage, including beer 1690 in the form of a freeze pop, popsicle, ice cream, or sorbet. 1691 Section 16. Section 32B-9-203 is amended to read: 1692 32B-9-203 . Bond for event permit. 1693 (1)(a) A person applying for an event permit shall post a [cash bond or ]surety bond: - 50 - Enrolled Copy S.B. 328 1694 (i) in the amount specified in [the relevant part under ]this chapter for the type of 1695 event permit for which the person is applying; and 1696 (ii) payable to the department. 1697 (b) An event permittee shall procure and maintain a bond required under this section for 1698 as long as the event permit is in effect. 1699 (2) A bond posted by an event permittee under this section shall be: 1700 (a) in a form approved by the attorney general; and 1701 (b) conditioned upon the event permittee's faithful compliance with this title and the 1702 rules of the commission. 1703 (3) No part of a bond posted by an event permittee under this section may be withdrawn 1704 during the period the event permit is in effect. 1705 (4)(a) A bond posted by an event permittee under this section may be forfeited if the 1706 event permit is revoked. 1707 (b) Notwithstanding Subsection (4)(a), the department may make a claim against a bond 1708 posted by an event permittee for money owed the department under this title without 1709 the commission first revoking the event permit. 1710 Section 17. Effective Date. 1711 This bill takes effect on May 7, 2025. - 51 -