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/lib/live/config/1120-util-linux is in live-config 5.20170112+deb9u1.

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The actual contents of the file can be viewed below.

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#!/bin/sh

## live-config(7) - System Configuration Components
## Copyright (C) 2006-2015 Daniel Baumann <mail@daniel-baumann.ch>
##
## This program comes with ABSOLUTELY NO WARRANTY; for details see COPYING.
## This is free software, and you are welcome to redistribute it
## under certain conditions; see COPYING for details.


#set -e

Cmdline ()
{
	# Reading kernel command line
	for _PARAMETER in ${LIVE_CONFIG_CMDLINE}
	do
		case "${_PARAMETER}" in
			live-config.utc=*|utc=*)
				LIVE_UTC="${_PARAMETER#*utc=}"
				;;
		esac
	done
}

Init ()
{
	# Checking if package is installed
	if [ ! -e /var/lib/dpkg/info/util-linux.list ] || \
	   [ -e /var/lib/live/config/util-linux ]
	then
		exit 0
	fi

	echo -n " util-linux"
}

Config ()
{
	rm -f /etc/rc?.d/*hwclock*

	if [ -n "${LIVE_UTC}" ]
	then
		case "${LIVE_UTC}" in
			yes)

cat > /etc/adjtime << EOF
0.0 0 0.0
0
UTC
EOF

				;;

			no)

cat > /etc/adjtime << EOF
0.0 0 0.0
0
LOCAL
EOF

				;;
		esac
	fi

	# Creating state file
	touch /var/lib/live/config/util-linux
}

Cmdline
Init
Config