32A-4-307 (Repealed 07/01/11) - Operational restrictions. - Utah Statutes

32A-4-307 (Repealed 07/01/11). Operational restrictions.
A person granted a limited restaurant license and the employees and managementpersonnel of the limited restaurant shall comply with the following conditions and requirements. Failure to comply may result in a suspension or revocation of the license or other disciplinaryaction taken against individual employees or management personnel.
(1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee exceptfrom a state store or package agency.
(b) Wine and heavy beer purchased from a state store or package agency may betransported by the limited restaurant licensee from the place of purchase to the licensed premises.
(c) Payment for wine and heavy beer shall be made in accordance with rules establishedby the commission.
(2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of theproducts listed in Subsection (2)(c) on the premises of the limited restaurant.
(b) A product listed in Subsection (2)(c) may not be on the premises of the limitedrestaurant except for use:
(i) as a flavoring on a dessert; and
(ii) in the preparation of a flaming food dish, drink, or dessert.
(c) This Subsection (2) applies to:
(i) spirituous liquor; and
(ii) a flavored malt beverage.
(3) (a) (i) Wine may be sold and served by the glass or an individual portion not toexceed five ounces per glass or individual portion.
(ii) An individual portion may be served to a patron in more than one glass as long as thetotal amount of wine does not exceed five ounces.
(iii) An individual portion of wine is considered to be one alcoholic beverage underSubsection (7)(g).
(b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a pricefixed by the commission to a table of four or more persons.
(ii) Wine may be sold and served in a container not exceeding 750 milliliters at a pricefixed by the commission to a table of less than four persons.
(c) A wine service may be performed and a service charge assessed by the limitedrestaurant licensee as authorized by commission rule for wine purchased at the limited restaurant.
(4) (a) Heavy beer may be served in an original container not exceeding one liter at aprice fixed by the commission.
(b) A service charge may be assessed by the limited restaurant licensee as authorized bycommission rule for heavy beer purchased at the limited restaurant.
(5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer foron-premise consumption:
(A) in an open container; and
(B) on draft.
(ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does notexceed two liters, except that beer may not be sold to an individual patron in a size of containerthat exceeds one liter.
(b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
(i) may do so without obtaining a separate on-premise beer retailer license from the

commission; and
(ii) shall comply with all appropriate operational restrictions under Chapter 10, BeerRetailer Licenses, that apply to an on-premise beer retailer except when those restrictions areinconsistent with or less restrictive than the operational restrictions under this part.
(c) Failure to comply with the operational restrictions under Chapter 10, Beer RetailerLicenses, required by Subsection (5)(b) may result in a suspension or revocation of the limitedrestaurant's:
(i) limited restaurant license; and
(ii) alcoholic beverage license issued by the local authority.
(6) Wine, heavy beer, and beer may not be stored, served, or sold in a place other than asdesignated in the limited restaurant licensee's application, unless the limited restaurant licenseefirst applies for and receives approval from the department for a change of location within thelimited restaurant.
(7) (a) (i) As used in this Subsection (7), and subject to Subsection (7)(a)(ii),"grandfathered bar structure" means a bar structure in a restaurant that:
(A) as of May 11, 2009 has:
(I) (Aa) patron seating at the bar structure;
(Bb) a partition at one or more locations on the bar structure that is along the width of thebar structure; and
(Cc) facilities for the dispensing or storage of an alcoholic beverage on the portion of thebar structure that is separated by the partition described in Subsection (7)(a)(i)(A)(I)(Bb); or
(II) (Aa) patron seating at the bar structure;
(Bb) a partition at one or more locations on the bar structure that is along the length ofthe bar structure; and
(Cc) facilities for the dispensing or storage of an alcoholic beverage:
(Ii) on the portion of the bar structure that is separated by a partition described inSubsection (7)(a)(i)(A)(II)(Bb); or
(IIii) adjacent to the bar structure in a manner visible to a patron sitting at the barstructure;
(B) is not operational as of May 12, 2009, and:
(I) an applicant for a limited restaurant license under this chapter:
(Aa) has as of May 12, 2009, a building permit to construct the restaurant;
(Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, asdefined by rule made by the commission in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act; and
(Cc) is granted a limited restaurant license by the commission under this chapter by nolater than December 31, 2009; and
(II) the restaurant described in Subsection (7)(a)(i)(C)(I) has a bar structure described inSubsection (7)(a)(i)(A);
(C) as of May 12, 2009, has no patron seating at the bar structure; or
(D) is not operational as of May 12, 2009, and:
(I) an applicant for a limited restaurant license under this chapter:
(Aa) has as of May 12, 2009, a building permit to construct the restaurant;
(Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, asdefined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah

Administrative Rulemaking Act; and
(Cc) is granted a limited restaurant license by the commission under this chapter by nolater than December 31, 2009; and
(II) the restaurant described in Subsection (7)(a)(i)(D)(I) has a bar structure described inSubsection (7)(a)(i)(C).
(ii) "Grandfathered bar structure" does not include a grandfathered bar structuredescribed in Subsection (7)(a)(i) on or after the day on which a restaurant remodels thegrandfathered bar structure, as defined by rule made by the commission in accordance with Title63G, Chapter 3, Utah Administrative Rulemaking Act.
(iii) Subject to Subsection (7)(a)(ii), a grandfathered bar structure remains agrandfathered bar structure notwithstanding whether the restaurant undergoes a change ofownership.
(b) (i) A patron may only make an alcoholic beverage purchase in a limited restaurantfrom and be served by a person employed, designated, and trained by the limited restaurantlicensee to sell and serve an alcoholic beverage.
(ii) Only a person employed, designated, and trained by a limited restaurant licensee maysell, serve, or deliver an alcoholic beverage to a patron of a restaurant.
(iii) Notwithstanding Subsection (7)(b)(i) or (ii), a patron who purchases bottled winefrom an employee of the limited restaurant licensee or carries bottled wine onto the premises ofthe limited restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to thepatron or others at the patron's table.
(c) A patron may consume an alcoholic beverage only:
(i) at:
(A) the patron's table;
(B) a counter;
(C) a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); and
(ii) where food is served.
(d) (i) An alcoholic beverage may not be served to or consumed by a patron at a barstructure that is not a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B).
(ii) A patron who is 21 years of age or older may:
(A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B);
(B) be served an alcoholic beverage at a grandfathered bar structure described inSubsection (7)(a)(i)(A) or (B); and
(C) consume an alcoholic beverage at a grandfathered bar structure described inSubsection (7)(a)(i)(A) or (B).
(iii) Except as provided in Subsection (7)(d)(iv), a limited restaurant licensee may notpermit a minor to, and a minor may not:
(A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); or
(B) consume food or beverages at a bar structure described in Subsection (7)(a)(i)(A) or(B).
(iv) (A) A minor may be at a grandfathered bar structure described in Subsection(7)(a)(i)(A) or (B) if the minor is employed by a limited restaurant licensee:
(I) as provided in Subsection (16)(b); or
(II) to perform maintenance and cleaning services during an hour when the limitedrestaurant licensee is not open for business.

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(B) A minor may momentarily pass by a grandfathered bar structure described inSubsection (7)(a)(i)(A) or (B) without remaining or sitting at the bar structure en route to an areaof a limited restaurant licensee's premises in which the minor is permitted to be.
(e) Except as provided in Subsection (14), a limited restaurant licensee may dispense analcoholic beverage only:
(i) from:
(A) a grandfathered bar structure;
(B) an area adjacent to a grandfathered bar structure that is visible to a patron sitting atthe grandfathered bar structure if that area is used to dispense an alcoholic beverage or alcoholicproduct as of May 12, 2009; or
(C) an area that is:
(I) separated from an area for the consumption of food by a restaurant patron by a solid,opaque, permanent structural barrier such that the facilities for the dispensing or storage of analcoholic beverage or alcoholic product are:
(Aa) not readily visible to a restaurant patron; and
(Bb) not accessible by a restaurant patron; and
(II) apart from an area used for:
(Aa) dining;
(Bb) staging; or
(Cc) as a lobby or waiting area;
(ii) if the limited restaurant licensee uses an alcoholic beverage or alcoholic product thatis:
(A) stored in an area described in Subsection (7)(e)(i); or
(B) on the premises of the limited restaurant licensee in an area not described inSubsection (7)(e)(i) if:
(I) immediately before the alcoholic beverage or alcoholic product is dispensed it is in anunopened package;
(II) the unopened package is taken to an area described in Subsection (7)(e)(i) before it isopened; and
(III) once opened, the package is kept in an area described in Subsection (7)(e)(i); and
(iii) if any instrument or equipment used to dispense an alcoholic beverage is located inan area described in Subsection (7)(e)(i).
(f) (i) A limited restaurant licensee that has a grandfathered bar structure may receive acredit for purchases from a state store or package agency if:
(A) the limited restaurant licensee completes a remodel of the grandfathered bar structureby no later than December 31, 2011;
(B) the remodeling described in Subsection (7)(f)(i)(A) results in the restaurant engagingin an activity described in Subsection (7)(e) only in an area described in Subsection (7)(e)(i)(C);
(C) the limited restaurant licensee requests the credit by no later than April 1, 2012;
(D) the department determines that the limited restaurant licensee has completed aremodel described in Subsections (7)(f)(i)(A) and (B); and
(E) the department authorizes the credit, including the amount of the credit underSubsection (7)(f)(ii), on the basis that:
(I) the limited restaurant licensee complied with this Subsection (7); and
(II) the aggregate of credits authorized under this Subsection (7)(f) and Subsection

32A-4-106(7)(f) before the current authorization does not exceed the amount described inSubsection (7)(f)(v)(A).
(ii) The amount of the credit described in this Subsection (7)(f) is the lesser of:
(A) the actual costs of the remodel as evidenced by receipts, copies of which areprovided to the department as part of the request for the credit; or
(B) $30,000.
(iii) For a limited restaurant licensee, a credit under this Subsection (7)(f):
(A) begins on the day on which the department authorizes the credit under Subsection(7)(f)(i); and
(B) ends the day on which the limited restaurant licensee uses all of the credit.
(iv) The department shall by contract provide for how a package agency accounts for acredit purchase made at the package agency by a limited restaurant licensee under this Subsection(7)(f).
(v) (A) Notwithstanding the other provisions of this Subsection (7)(f), the departmentmay not authorize a credit if the aggregate of credits authorized under this Subsection (7)(f) andSubsection 32A-4-106(7)(f) before the department authorizes the credit exceeds:
(I) $1,000,000, for the aggregate of credits under this Subsection (7)(f) and Subsection32A-4-106(7)(f), if the credit could be used on or before June 30, 2010; and
(II) subject to Subsection (7)(v)(A)(I), $1,090,000 for the aggregate of all credits that canbe authorized under this Subsection (7)(f) and Subsection 32A-4-106(7)(f).
(B) The department shall authorize credits in the order that the department receives arequest described in Subsection (7)(f)(i)(C) from a limited restaurant licensee requesting a creditunder this Subsection (7)(f).
(g) A limited restaurant patron may have no more than two alcoholic beverages of anykind at a time before the patron.
(8) (a) An alcoholic beverage storage area shall remain locked at all times other thanthose hours and days when alcoholic beverage sales are authorized by law.
(b) A limited restaurant licensee shall store an alcoholic beverage or alcoholic product ina storage area described in Subsection (7)(e)(i).
(9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwisefurnished at a limited restaurant on any day after 12 midnight or before 12 noon.
(b) The hours of beer sales and service are those specified in Chapter 10, Beer RetailerLicenses, for on-premise beer licensees.
(10) An alcoholic beverage may not be sold except in connection with an order of foodprepared, sold, and served at the limited restaurant.
(11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to a:
(a) minor;
(b) person actually, apparently, or obviously intoxicated;
(c) known habitual drunkard; or
(d) known interdicted person.
(12) (a) (i) Wine and heavy beer may be sold only at a price fixed by the commission.
(ii) Wine and heavy beer may not be sold at a discount price on any date or at any time.
(b) An alcoholic beverage may not be sold at less than the cost of the alcoholic beverageto the limited restaurant licensee.
(c) An alcoholic beverage may not be sold at a special or reduced price that encourages

over consumption or intoxication.
(d) An alcoholic beverage may not be sold at a special or reduced price for only certainhours of the limited restaurant licensee's business day such as a "happy hour."
(e) More than one alcoholic beverage may not be sold or served for the price of a singlealcoholic beverage.
(f) An indefinite or unlimited number of alcoholic beverages during a set period may notbe sold or served for a fixed price.
(g) A limited restaurant licensee may not engage in a public promotion involving oroffering free alcoholic beverages to the general public.
(13) An alcoholic beverage may not be purchased for a patron of the limited restaurantby:
(a) the limited restaurant licensee; or
(b) an employee or agent of the limited restaurant licensee.
(14) (a) A person may not bring onto the premises of a limited restaurant licensee analcoholic beverage for on-premise consumption, except a person may bring, subject to thediscretion of the limited restaurant licensee, bottled wine onto the premises of a limitedrestaurant licensee for on-premise consumption.
(b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or anofficer, manager, employee, or agent of a limited restaurant licensee may not allow:
(i) a person to bring onto the limited restaurant premises an alcoholic beverage foron-premise consumption; or
(ii) consumption of an alcoholic beverage described in Subsection (14)(b)(i) on thelimited restaurant licensee's premises.
(c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server orother representative of the limited restaurant licensee upon entering the limited restaurant.
(d) A wine service may be performed and a service charge assessed by the limitedrestaurant licensee as authorized by commission rule for wine carried in by a patron.
(15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and anemployee of the limited restaurant licensee may not permit a restaurant patron to carry from thelimited restaurant premises an open container that:
(i) is used primarily for drinking purposes; and
(ii) contains an alcoholic beverage.
(b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed contentsof a bottle of wine if before removal, the bottle is recorked or recapped.
(16) (a) A limited restaurant licensee may not employ a minor to sell or dispense analcoholic beverage.
(b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may beemployed to enter the sale at a cash register or other sales recording device.
(17) An employee of a limited restaurant licensee, while on duty, may not:
(a) consume an alcoholic beverage; or
(b) be intoxicated.
(18) A charge or fee made in connection with the sale, service, or consumption of wineor heavy beer may be stated in food or alcoholic beverage menus including:
(a) a service charge; or
(b) a chilling fee.

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(19) A limited restaurant licensee shall display in a prominent place in the restaurant:
(a) the limited restaurant license that is granted by the department; and
(b) a sign in large letters stating: "Warning: Driving under the influence of alcohol ordrugs is a serious crime that is prosecuted aggressively in Utah."
(20) A limited restaurant licensee may not on the premises of the restaurant:
(a) engage in or permit any form of gambling, as defined and proscribed in Title 76,Chapter 10, Part 11, Gambling;
(b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,Part 11, Gambling; or
(c) engage in or permit a contest, game, gaming scheme, or gaming device that requiresthe risking of something of value for a return or for an outcome when the return or outcome isbased upon an element of chance, excluding the playing of an amusement device that confersonly an immediate and unrecorded right of replay not exchangeable for value.
(21) (a) A limited restaurant licensee shall maintain an expense ledger or record showingin detail:
(i) quarterly expenditures made separately for:
(A) wine;
(B) heavy beer;
(C) beer;
(D) food; and
(E) all other items required by the department; and
(ii) sales made separately for:
(A) wine;
(B) heavy beer;
(C) beer;
(D) food; and
(E) all other items required by the department.
(b) A limited restaurant licensee shall keep a record required by Subsection (21)(a):
(i) in a form approved by the department; and
(ii) current for each three-month period.
(c) An expenditure shall be supported by:
(i) a delivery ticket;
(ii) an invoice;
(iii) a receipted bill;
(iv) a canceled check;
(v) a petty cash voucher; or
(vi) other sustaining datum or memorandum.
(d) In addition to the ledger or record maintained under Subsections (21)(a) through (c), alimited restaurant licensee shall maintain accounting and other records and documents as thedepartment may require.
(e) Any limited restaurant licensee or person acting for the restaurant, who knowinglyforges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account orother document of the limited restaurant that is required to be made, maintained, or preserved bythis title or the rules of the commission for the purpose of deceiving the commission, thedepartment, or an official or employee of the commission or department, is subject to:

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(i) the suspension or revocation of the limited restaurant's license; and
(ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
(22) (a) A limited restaurant licensee may not close or cease operation for a period longerthan 240 hours, unless:
(i) the limited restaurant licensee notifies the department in writing at least seven daysbefore the day on which the limited restaurant licensee closes or ceases operation; and
(ii) the closure or cessation of operation is first approved by the department.
(b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the limitedrestaurant licensee shall immediately notify the department by telephone.
(c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure orcessation of operation for a period not to exceed 60 days.
(ii) The department may extend the initial period an additional 30 days upon:
(A) written request of the limited restaurant licensee; and
(B) a showing of good cause.
(iii) A closure or cessation of operation may not exceed a total of 90 days withoutcommission approval.
(d) A notice required by Subsection (22)(a) shall include:
(i) the dates of closure or cessation of operation;
(ii) the reason for the closure or cessation of operation; and
(iii) the date on which the limited restaurant licensee will reopen or resume operation.
(e) Failure of the limited restaurant licensee to provide notice and to obtain departmentauthorization before closure or cessation of operation results in an automatic forfeiture of:
(i) the limited restaurant license; and
(ii) the unused portion of the license fee for the remainder of the license year effectiveimmediately.
(f) Failure of the limited restaurant licensee to reopen or resume operation by theapproved date results in an automatic forfeiture of:
(i) the limited restaurant license; and
(ii) the unused portion of the license fee for the remainder of the license year.
(23) A limited restaurant licensee shall maintain at least 70% of its total restaurantbusiness from the sale of food, which does not include service charges.
(24) A limited restaurant license may not be transferred from one location to another,without prior written approval of the commission.
(25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,give, or attempt in any way to dispose of the limited restaurant license to another person whetherfor monetary gain or not.
(b) A limited restaurant license has no monetary value for the purpose of any type ofdisposition.
(26) (a) A server of wine, heavy beer, and beer in a limited restaurant licensee'sestablishment shall keep a written beverage tab for each table or group that orders or consumesan alcoholic beverage on the premises.
(b) The beverage tab required by Subsection (26)(a) shall list the type and amount of analcoholic beverage ordered or consumed.
(27) A limited restaurant licensee may not make a person's willingness to serve analcoholic beverage a condition of employment as a server with the limited restaurant.

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(28) A limited restaurant licensee or an employee of the limited restaurant licensee maynot knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
(a) sell, distribute, possess, or use a controlled substance, as defined in Section 58-37-2;or
(b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined inSection 58-37a-3.

Repealed by Chapter 276, 2010 General Session
Amended by Chapter 383, 2009 General Session