R81-5-14. Membership Fees and Monthly Dues

  (1) Authority. This rule is pursuant to the commission's powers and duties under 32B-2-202(1)(C)(i)general licensing procedures and 32B-6-405(2) for issuing an equity or fraternal bar establishment licenses.

  (2) Purpose. This rule furthers the intent of 32B-6-407 that equity and fraternal clubs operate in a manner that preserves the concept that they are private and not open to the general public.

  (3) Application of Rule.

  (a) Each equity and fraternal club shall establish in its by-laws membership application fees and monthly membership dues in amounts determined by the club.

  (b) An equity or fraternal 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.