No. 34791 (5-year Review): Rule R81-5. Private Clubs

DAR File No.: 34791
Filed: 05/10/2011 11:18:03 AM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 32A-1-107 authorizes the ABC Commission to adopt and issue rules; set policy by rule that establishes criteria and procedures for granting, denying, suspending, or revoking licenses and permits; and prescribe the conduct, management, and equipment of any premises where alcohol is sold, served, consumed, or stored.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

Section R81-5-11 was amended to eliminate the need for alcohol price lists to be part of the house rules of a club. This change was urged by the Utah Hospitality Association and the Commission agreed to make the change. Section R81-5-18 was enacted to implement the new law that requires social and dining clubs to use age verification devices. We received three comments from suppliers and manufacturers of electronic scanning devices. One was concerned that his scanners could not read military IDs and passports. Another suggested that the scanners contain both a magnetic strip reader and a bar code reader, and that clubs be required to use electronic scanners first and that alternative means of checking ID be allowed only if the ID is not readable by electronic means. The third company wanted the device to have a customer ban feature and have the ability to retain a full color digital image of the person's ID for a set period of time. The ABC Commission chose to allow the broadest spectrum of devices. Moreover, the new statute gave the clubs the option of using an electronic device or "an acceptable alternate process." Finally, Sections R81-5-2, 5, 6, 7, 9, 10, 13, 14, 15, 16, and 17 were amended but we received no public comments on them.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule regulates operations at establishments licensed as clubs. It sets guidelines for license application procedures and establishes operational restrictions for the different club classifications; addresses bond and insurance requirements; sets advertising requirements for equity and fraternal clubs; establishes procedures for the purchase of liquor from state liquor stores; sets liquor sales hours; permits club customers to run a tab for the purchase of alcoholic beverages; permits liquor products used for all purposes including cooking and flavoring to be stored in a common storage area; identifies liquor price list requirements; establishes requirements for employee ID badges; allows patrons to bring alcoholic beverages onto the club's premises for privately hosted events; establishes procedures for assessing equity and fraternal club membership fees and monthly dues; prohibits minors from being in lounge or bar areas of dining, equity, or fraternal clubs, and prohibits them from being on the premises of a social club; defines the procedures for using electronic age verification devices in social and dining club. All of the regulations set forth in this rule remain important and applicable to the operations of a private club. Therefore, this rule should be continued.

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:

• Vickie Ashby at the above address, by phone at 801-977-6801, by FAX at 801-977-6889, or by Internet E-mail at [e-mail]

Authorized by:

Dennis Kellen, Director

Effective:

05/10/2011

---