DAR File No. 37618

Alcoholic Beverage Control, Administration

Section R81-5-5

Advertising

Notice of Proposed Rule

(Amendment)

DAR File No.: 37618
Filed: 05/13/2013 02:15:36 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 228 passed by the Legislature in the 2013 General Session amended Section 32B-6-407 eliminated the prohibition against a public advertising for fraternal and equity clubs. This section is being removed to be consistent with state statute.

Summary of the rule or change:

This section is being removed in its entirety.

State statutory or constitutional authorization for this rule:

• Section 32B-6-607
• Section 32B-1-607

Anticipated cost or savings to:

the state budget:

None--This rule filing simply makes the Department of Alcoholic Beverage Control (DABC) rules consistent with state statute.

local governments:

None--This rule filing simply makes the DABC rules consistent with state statute.

small businesses:

None--This rule filing simply makes the DABC rules consistent with state statute.

persons other than small businesses, businesses, or local governmental entities:

None--This rule filing simply makes the DABC rules consistent with state statute.

Compliance costs for affected persons:

None--This rule filing simply makes the DABC rules consistent with state statute.

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

None--This rule filing simply makes the DABC rules consistent with state statute.

Salvador D. Petilos, Executive 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:

• Nina McDermott at the above address, by phone at 801-977-6805, by FAX at 801-977-6888, or by Internet E-mail at nmcdermott@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:

07/01/2013

This rule may become effective on:

07/08/2013

Authorized by:

Sal Petilos, Executive Director

R81. Alcoholic Beverage Control, Administration.

R81-5. Club Licenses.

[R81-5-5. Advertising.

(1) Authority. This rule is pursuant to the commission's powers and duties under 32B-2-202 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 32B-6-407(13) that equity and fraternal clubs advertise in a manner that preserves the concept that such clubs are private and not open to the general public.

(3) Application of Rule.

(a) Any public advertising by 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 club for members". In print media, this club identification information must be no smaller than 10 point bold type.

(b) 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 to the general public;

(ii) offering or providing full or partial payment of membership fees or dues to members of the general public;

(iii) offering or implying an entitlement to a club membership 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: [May 22, 2012]2013

Notice of Continuation: May 10, 2011

Authorizing, and Implemented or Interpreted Law: 32B-1-607; 32B-2-202; 32B-5; [32B-6-409(3)]32B-6-401 through 409