Commission's power to issue on-premise banquet license -- Contracts as host.
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(1)
(a) Before a person may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product in connection with the person's banquet and room service activities at one of the following, the person shall first obtain an on-premise banquet license in accordance with this part:
(i) a hotel;
(ii) a resort facility;
(iii) a sports center;
(iv) a convention center;
(v) a performing arts facility; or
(vi) an arena.
(b) This part does not prohibit an alcoholic product on the premises of a person listed in Subsection (1)(a) to the extent otherwise permitted by this title.
(c) This section does not prohibit a person who applies for an on-premise banquet license to also apply for a package agency if otherwise qualified.
(2) The commission may issue an on-premise banquet license to establish on-premise banquet licensees in the numbers the commission considers proper for the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product at a banquet or as part of room service activities operated by an on-premise banquet licensee.
(3) Subject to Section 32B-1-201, the commission may not issue a total number of on-premise banquet licenses that at any time exceed the number determined by dividing the population of the state by 28,765.
(4) Pursuant to a contract between the host of a banquet and an on-premise banquet licensee:
(a) the host of the banquet may request an on-premise banquet licensee to provide an alcoholic product served at the banquet; and
(b) an on-premise banquet licensee may provide an alcoholic product served at the banquet.
(5) At a banquet, an on-premise banquet licensee may furnish an alcoholic product:
(a) without charge to a patron at a banquet, except that the host of the banquet shall pay for an alcoholic product furnished at the banquet; or
(b) with a charge to a patron at the banquet.
(6) To be licensed as an on-premise banquet, a person shall maintain at least 50% of the person's total annual banquet gross receipts from the sale of food, which does not include:
(a) mix for an alcoholic product; or
(b) a charge in connection with the furnishing of an alcoholic product.