No. 27725 (Amendment): R81-5-5. Advertising

DAR File No.: 27725
Filed: 02/25/2005, 09:20
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This proposed rule amendment furthers the intent of Subsection 32A-5-107(18) that private clubs advertise in a manner that preserves the concept that private clubs are private and not open to the general public.

 

Summary of the rule or change:

This proposed rule amendment outlines advertising prohibitions for private clubs or their members, employees, agents, or any person under a contract or agreement with the club. These prohibitions eliminate promotional schemes that offer complimentary memberships or visitor cards to members of the general public, partial payment for memberships, or visitor cards to members of the general public; an implication that a member of the general public is entitled to a membership or visitor card, or offer to host members of the general public into a club.

 

State statutory or constitutional authorization for this rule:

Section 32A-1-107 and Subsection 32A-5-107(18)

 

Anticipated cost or savings to:

the state budget:

None--No part of club membership and visitor card revenues are remitted to the State of Utah. Therefore, not allowing clubs to offer complimentary or partially-paid membership or visitor cards will not affect the State budget.

 

local governments:

None--No part of club membership and visitor card revenues are remitted to local governments, therefore, this proposed rule amendment will not effect a cost or savings to local governments.

 

other persons:

None--Private clubs are not required to advertise, but if they choose to do so, this proposed rule amendment outlines advertising prohibitions that will preserve the concept set forth by statute that private clubs are private and not open to the general public.

 

Compliance costs for affected persons:

None--Private clubs are not required to advertise, but if they choose to do so, this proposed rule amendment outlines advertising prohibitions that will preserve the concept set forth by statute that private clubs are private and not open to the general public.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

This proposed rule amendment could have a fiscal impact on private clubs that would like to increase their liquor and food sales by enticing members of the general public into the club with free or discounted memberships or visitor cards or by offering to host them into the club. The Department of Alcohol Beverage Control feels strongly that statutes designed to maintain the integrity of the private club concept must be upheld by requiring that those applying for membership or visitor cards do so in accordance with membership requirements and that clubs do not advertise otherwise. Kenneth F. Wynn, Director

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Alcoholic Beverage Control
Administration
1625 S 900 W
SALT LAKE CITY UT 84104-1630

 

Direct questions regarding this rule to:

Sharon Mackay at the above address, by phone at 801-977-6800, by FAX at 801-977-6889, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

04/14/2005

 

This rule may become effective on:

04/15/2005

 

Authorized by:

Kenneth F. Wynn, Director

 

 

RULE TEXT

R81. Alcoholic Beverage Control, Administration.

R81-5. Private Clubs.

R81-5-5. Advertising.

(1) Authority. This rule is pursuant to the commission's powers and duties under 32A-1-107 to act as a general policymaking body on the subject of alcoholic beverage control and to set policy by written rules that prescribe the conduct and management of any premises upon which alcoholic beverages may be sold, consumed, served, or stored.

(2) Purpose. This rule furthers the intent of 32A-5-107(18) that private clubs advertise in a manner that preserves the concept that private clubs are private and not open to the general public.

(3) Application of Rule.

[(1)](a) Any public [solicitation or public ]advertising by a private club, its employees[ or], agents, or members, or by any person under contract or agreement with the club shall clearly identify the club as being "a private club for members". In print media, this club identification information must be no smaller than 10 point bold type.

(b) A private club, its employees, agents, or members, or any person under a contract or agreement with the club may not directly or indirectly engage in or participate in any public advertising or promotional scheme that runs counter to the concept that clubs are private and not open to the general public such as:

(i) offering or providing complimentary club memberships or visitor cards to the general public;

(ii) offering or providing full or partial payment of membership fees or dues, or visitor card fees to members of the general public;

(iii) offering or implying an entitlement to a club membership or visitor card to members of the general public; or

(iv) offering to host members of the general public into the club.

 

KEY: alcoholic beverages

[August 1, 2003]2005

Notice of Continuation December 18, 2001

32A-1-107

32A-5-107(18)

32A-5-107(23)