DAR File No. 32581

Alcoholic Beverage Control, Administration

R81-5-5

Advertising

NOTICE OF PROPOSED RULE

DAR File No.: 32581
Filed: 04/29/2009, 03:16
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is being proposed to implement provisions of S.B. 187 which was passed by the 2009 State Legislature. (DAR NOTE: S.B. 187 (2009) is found at Chapter 383, Laws of Utah 2009, and was effective 05/12/2009.)

Summary of the rule or change:

This rule amendment exchanges the word "private" for "equity and fraternal" when referring to the two classes of clubs that will remain private. The amendment also removes references to visitor cards because there will no longer be a need for the sale of visitor cards. One statutory reference will also be corrected.

State statutory or constitutional authorization for this rule:

Section 32A-1-107

Anticipated cost or savings to:

the state budget:

None--This amendment does not change the intent of the rule, only the language. There will be no cost or savings to the state budget as a result.

local governments:

None--This amendment makes minor changes to some terminology in the rule. There will be no costs to local governments as a result.

small businesses and persons other than businesses:

None--Since this rule amendment merely changes the language in the rule to mirror the language in S.B. 187, there will be no costs or savings to small businesses.

Compliance costs for affected persons:

None--The two remaining classifications of private clubs do not sell visitor cards, therefore, there will be no operational changes required and no compliance costs as a result of this amendment.

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

The amendments to this rule will have no fiscal impact on club licensees. Dennis R. Kellen, 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 [email protected]

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:

06/15/2009

This rule may become effective on:

06/22/2009

Authorized by:

Dennis R. Kellen, Director

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[(17)](1) that [private]equity and fraternal clubs advertise in a manner that preserves the concept that [private]such clubs are private and not open to the general public.

(3) Application of Rule.

(a) Any public advertising by [a private]an equity or fraternal 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]An equity or fraternal 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 such 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

Date of Enactment or Last Substantive Amendment: [June 27, 2008]2009

Notice of Continuation: September 7, 2006

Authorizing, and Implemented or Interpreted Law: 32A-1-107; 32A-5-107(18); 32A-5-107(23)