DAR File No. 32600

Alcoholic Beverage Control, Administration

R81-5-17

Visitor Cards

NOTICE OF PROPOSED RULE

DAR File No.: 32600
Filed: 04/30/2009, 01:47
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is being proposed to implement the provisions of S.B. 187 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:

Since dining and social clubs will no longer be private, and equity and fraternal clubs will deal with memberships according to their bylaws, there is no further need for a club to sell a visitor card. Therefore, this section will be deleted in its entirety.

State statutory or constitutional authorization for this rule:

Section 32A-1-107

Anticipated cost or savings to:

the state budget:

None--The state does not receive any revenues from a club's sale of visitor cards, so eliminating the need for visitor cards will not affect the state budget.

local governments:

None--The practice of selling visitor cards has always been regulated by state government. There will be no cost or savings to local governments resulting from the deletion of this section.

small businesses and persons other than businesses:

The law previously mandated that dining and social clubs could sell visitor cards for a minimum of $4. For the clubs who sold visitor cards, there may be a small reduction in revenue. Since the number of visitor cards sold in a given period of time varies, it is not possible to estimate what this monetary loss may be.

Compliance costs for affected persons:

None--If anything, dining and social clubs may realize a savings in the printing costs of applications and visitor cards, and the time spent keeping records of visitor card sales.

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

Dining and social clubs may realize a savings in the printing costs of applications and visitor cards, and the time spent keeping records of visitor card sales. 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 smackay@utah.gov

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.

[R81-5-17. Visitor Cards.

(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).

 

]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)