No. 27726 (Amendment): R81-5-14. Membership Fees and Monthly Dues

DAR File No.: 27726
Filed: 02/25/2005, 10:15
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is proposed to further the intent of Subsections 32A-5-107(1) through 32A-5-107(7) that private clubs operate 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 specifies the minimal application fee to be charged to persons applying for a membership to a private club. It also places into rule procedures by which a hotel with a private club on the premises may assist in the issuance of a club membership to hotel guests.

 

State statutory or constitutional authorization for this rule:

Section 32A-1-107 and Subsections 32A-5-107(1) through 32A-5-107(7)

 

Anticipated cost or savings to:

the state budget:

None--This proposed rule amendment does not change the membership application fee, but rather clarifies it by placing it in rule beside the monthly membership fee. For years, hotels have been permitted to assist an on-premises club in issuing a club membership to a hotel guest. This proposed rule amendment outlines the regulations for this practice.

 

local governments:

None--State laws authorize the charge for and issuance of private club memberships. These are regulated by the Department of Alcoholic Beverage Control. Local governments will have no anticipated cost or savings as a result of this proposed rule amendment.

 

other persons:

None--Nothing in this proposed rule amendment alters what has been required or permitted for many years. The proposed amendment merely clarifies, in rule, the procedures governing the practices.

 

Compliance costs for affected persons:

None--Nothing in this proposed rule amendment alters what has been required or permitted for many years. The proposed amendment merely clarifies, in rule, the procedures governing the practices.

 

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

The proposed amendments to this rule will have no fiscal impact on businesses since the amendments do not alter membership application charges or the practices of hotels assisting in the issuance of memberships to hotels guests who choose to have access to private clubs located within the hotel. 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.

R81-5-14. Membership Fees and Monthly Dues.

(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(1) through (7) that private clubs operate in a manner that preserves the concept that private clubs are private and not open to the general public.

(3) Application of Rule.

(a) Each private club shall establish in its by-laws [initial ]membership application fees and monthly membership dues in amounts determined by the club. However, the application fees shall not be less than $4, and the monthly dues may not be less than one dollar per month.

(b) A private club, its employees, agents, or members, or any person under a contract or agreement with the club, may not, as part of an advertising or promotional scheme, offer to pay or pay for membership application fees or membership dues in full or in part for a member of the general public.

(c) Notwithstanding section (3)(b), if a private club is located within a hotel, the hotel may assist the club in the issuance of a club membership to a guest of the hotel under the following conditions:

(i) the guest has booked a room and is staying at the hotel;

(ii) the costs of the membership application fee and membership dues are paid for by the guest either as a separate charge, or as part of the hotel room rate;

(iii) the private club receives payment of the fees and dues for all memberships issued to guests of the hotel;

(iv) the hotel and the club shall maintain a current record of each membership issued to a guest of the hotel as required by the commission;

(v) the records required by subsection (iv) shall be available for inspection by the department; and

(vi) the issuance of the membership is done in accordance with the procedures outlined in 32A-5-107(1) through (4).

 

KEY: alcoholic beverages

[August 1, 2003]2005

Notice of Continuation December 18, 2001

32A-1-107

32A-5-107(18)

32A-5-107(23)