As in effect on November 1, 2008
(1) Private club liquor licenses are issued to persons as defined in Section 32A-1-105(36). Any contemplated action or transaction that may alter the organizational structure or ownership interest of the person to whom the license is issued must be submitted to the department for approval prior to consummation of any such action to ensure there is no violation of Sections 32A-5-103 and 32A-5-107(44).
(2)(a) At the time the commission grants a private club license the commission must designate whether the private club qualifies to operate as a class A, B, C, or D private club based on criteria in 32A-5-101.
(b) After the license is granted, a private club may request that the commission approve a change in the club's classification in writing supported by evidence to establish that the club qualifies to operate under the new class designation based on the criteria in 32A-5-101.
(c) The department shall conduct an investigation for the purpose of gathering information and making a recommendation to the commission as to whether or not the request should be granted. The information shall be forwarded to the commission to aid in its determination.
(d) If the commission determines that the private club has provided credible evidence to establish that it meets the statutory criteria to operate under the new class designation, the commission shall approve the request.
(3)(a) A class C private club must operate as a dining club as defined in 32A-5-101(3)(c), and must maintain at least 50% of its total private club business from the sale of food, not including mix for alcoholic beverages, service charges, and membership fees.
(b) A class C private club shall maintain records separately showing quarterly expenditures and sales for beer, heavy beer, liquor, wine, set-ups and food. These shall be available for inspection and audit by representatives of the department, and maintained for a period of three years.
(c) If any inspection or audit discloses that the sales of food are less than 50% for any quarterly period, an order to show cause shall be issued by the department to determine why the license should not be immediately reclassified by the commission as a class D private club. If the commission grants the order to show cause, the reclassification shall remain in effect until the licensee files a request for and receives approval from the commission to be classified as a class C private club. The request shall provide credible evidence to prove to the satisfaction of the commission that in the future, the sales of food will meet or exceed 50%.
A license application shall be included in the agenda of the monthly commission meeting for consideration for issuance of a private club license when the requirements of Sections 32A-5-102,-103, and -106 have been met, a completed application has been received by the department, and the private club premises have been inspected by the department.
No part of any corporate or cash bond required by Section 32A-5-106 may be withdrawn during the time the license is in effect. If the licensee fails to maintain a valid corporate or cash bond, the license shall be immediately suspended until a valid bond is obtained. Failure to obtain a bond within 30 days of notification by the department of the delinquency shall result in the automatic revocation of the license.
Public liability and dram shop insurance coverage required in Subsections 32A-5-102(1)(i) and (j) must remain in force during the time the license is in effect. Failure of the licensee to maintain the required insurance coverage may result in a suspension or revocation of the license by the commission.
(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.
(a) Any public advertising by a private club, its employees, 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.
The following procedures shall be followed when a private club liquor licensee orders liquor from or returns liquor to any state liquor store, package agency, or department satellite warehouse:
(1) The licensee must place the order in advance to allow department personnel sufficient time to assemble the order. The licensee or employees of the licensee may not pick merchandise directly off the shelves of a state store or package agency to fill the licensee's order. The order shall include the business name of the licensee, department licensee number, and list the products ordered specifying each product by code number and quantity.
(2) The licensee shall allow at least four hours for department personnel to assemble the order for pick-up. When the order is complete, the licensee will be notified by phone and given the total cost of the order. The licensee may pay for the product in cash, company check or cashier's check.
(3) The licensee or the licensee's designee shall examine and sign for the order before it leaves the store, agency or satellite warehouse to verify that the product has been received.
(4) Merchandise shall be supplied to the licensee on request when it is available on a first come first serve basis. Discounted items and limited items may, at the discretion of the department, be provided to a licensee on an allocated basis.
(5)(a) Spirituous liquor may be returned by the licensee for the original purchase price only under the following conditions:
(i) the bottle has not been opened;
(ii) the seal remains intact;
(iii) the label remains intact; and
(iv) upon a showing of the original cash register receipt.
(b) A restocking fee of 10% shall be assessed on the entire amount on any returned spirituous liquor order that exceeds $1,000. All spirituous liquor returned that is based on a single purchase on a single cash register receipt must be returned at the same time at a single store, package agency, or satellite warehouse location.
(b) Wine and beer may not be returned by the licensee for the original purchase price except upon a showing that the product was spoiled or non-consumable.
Allowable hours of liquor sales shall be in accordance with Section 32A-5-107(28). However, the licensee may open the liquor storage area during hours otherwise prohibited for the limited purpose of inventory, restocking, repair, and cleaning.
(1) A patron may pay for an alcoholic beverage at the time of purchase, or, at the discretion of both the licensee and the patron, the price charged may be added to the patron's tab.
(2) Liquor dispensing shall be in accordance with Section 32A-5-107; and Sections R81-1-9 (Liquor Dispensing Systems), R81-1-10 (Wine Dispensing), and R81-1-11 (Multiple Licensed Facility Storage and Service) of these rules.
Liquor bottles kept for sale in use with a dispensing system, liquor flavorings in properly labeled unsealed containers, and unsealed containers of wines poured by the glass may be stored in the same storage area of the private club as approved by the department.
(1) Alcoholic product flavoring may be utilized in beverages only during the authorized selling hours under the private club liquor license. Alcoholic product flavoring may be used in the preparation of food items and desserts at any time if plainly and conspicuously labeled "cooking flavoring".
(2) No club employee under the age of 21 years may handle alcoholic product flavorings.
(1) Each licensee shall have available for its patrons a printed price list containing current prices of all mixed drinks, wine, beer, and heavy beer. This list shall include any amounts charged by the licensee for the service of packaged liquor, wine or heavy beer. A copy shall be kept on the club premises and available at all times for examination by the members, guests, and visitors to the club.
(2) Any printed menu, master beverage price list or other printed list is sufficient as long as the prices are current and the list is readily available to the patron.
(3) Customers shall be notified of the price charged for any packaged liquor, wine or heavy beer and any service charges for the supply of glasses, chilling, or wine service.
(4) A licensee or his employee may not misrepresent the price of any alcoholic beverage that is sold or offered for sale on the licensed premises.
Each employee of the licensee who sells, dispenses or provides alcoholic beverages shall wear a unique identification badge visible above the waist, bearing the employee's first name, initials, or a unique number in letters or numbers not less than 3/8 inch high. The identification badge must be worn on the front portion of the employee's body. The licensee shall maintain a record of all employee badges assigned, which shall be available for inspection by any peace officer, or representative of the department. The record shall include the employee's full name and address and a driver's license or similar identification number.
When private social functions or privately hosted events, as defined in 32A-1-105(39), are held on the premises of a licensed private club, the proprietor may, in his or her discretion, allow members of the private group to bring onto the club premises, their own alcoholic beverages under the following circumstances:
(1) When the entire club is closed to regular patrons for the private function or event, or
(2) When an entire room or area within the club such as a private banquet room is closed to regular patrons for the private function or event, and members of the private group are restricted to that area, and are not allowed to co-mingle with regular patrons of the club.
(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 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).
(1) Pursuant to 32A-5-107(8)(a)(iv), a minor may not be admitted into, use, or be on the premises of any lounge or bar area of any class A, B, C, or D of private club except when the minor is employed by the club to perform maintenance and cleaning services during hours when the club is not open for business.
(2) "Lounge or bar area" includes:
(a) the bar structure as defined in 32A-1-105(4);
(b) any area in the immediate vicinity of the bar structure where the sale, service, display, and advertising of alcoholic beverages is emphasized; or
(c) any area that is in the nature of or has the ambience or atmosphere of a bar, parlor, lounge, cabaret or night club.
(3) A minor who is otherwise permitted to be on the premises of a class A, B or C private club may momentarily pass through the club's lounge or bar area en route to those areas of the club where the minor is permitted to be. However, no minor shall remain or be seated in the club's bar or lounge area.
(1) Pursuant to 32A-5-107(8)(a)(v), a minor may not be admitted into, use, or be on the premises of any private club that provides sexually oriented adult entertainment or operates as a sexually oriented business. This includes any club:
(a) that is licensed by local authority as a sexually oriented business;
(b) that allows any person on the premises to dance, model, or be or perform in a state of nudity or semi-nudity; or
(c) that shows films, motion pictures, video cassettes, slides, or other photographic reproductions which are characterized by their emphasis upon the exhibition or description of specified anatomical areas or specified sexual activities.
(2) "Nudity"or "state of nudity" means the showing of the human male or female genitals, pubic area, vulva, anus, or anal cleft with less than a fully opaque covering or the showing of the female breast with less than a fully opaque covering of any part of the nipple.
(3) "Semi-nudity" means a state of dress in which any opaque clothing covers the genitals, anus, anal cleft or cleavage, pubic area, and vulva narrower than four inches wide in the front and five inches wide in the back, and less than one inch wide at the narrowest point, and which covers the nipple and areola of the female breast narrower than a two inch radius.
(4) "Specified anatomical areas" means:
(a) human male genitals in a state of sexual arousal; or
(b) less than completely and opaquely covered buttocks, anus, anal cleft or cleavage, male or female genitals, or a female breast.
(5) "Specified sexual activities" means acts of, or simulating:
(a) masturbation;
(b) sexual intercourse;
(c) sexual copulation with a person or a beast;
(d) fellatio;
(e) cunnilingus;
(f) bestiality;
(g) pederasty;
(h) buggery;
(i) sodomy;
(j) excretory functions as part of or in connection with any of the activities set forth in (a) through (i).
(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) 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 purchase or purchase in full or in part a visitor card for a member of the general public.
(b) Notwithstanding section (3)(a), if a private club is located within a hotel, the hotel may assist the club in the issuance of a visitor card 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 cost of the visitor card is 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 for all visitor cards issued to guests of the hotel;
(iv) the hotel and the club shall maintain a current record of each visitor card issued to a guest of the hotel as required by the commission;
(v) the records required by subsection (iv) shall be kept for a period of three years and shall be available for inspection by the department; and
(vi) the issuance of the visitor card is done in accordance with the procedures outlined in 32A-5- 107(6).
alcoholic beverages
June 27, 2008
September 7, 2006
32A-1-107; 32A-5-107(18); 32A-5-107(23)
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