32B-6-407 (Effective 07/01/11) - Specific operational requirements for equity club license or fraternal club license.
32B-6-407 (Effective 07/01/11). Specific operational requirements for equity clublicense or fraternal club license.
(1) For purposes of this section only:
(a) "Club licensee" means an equity club licensee or fraternal club licensee.
(b) "Club licensee" does not include a dining club licensee or social club licensee.
(2) (a) A club licensee shall have a governing body that:
(i) consists of three or more members of the club; and
(ii) holds regular meetings to:
(A) review membership applications; and
(B) conduct other business as required by the bylaws or house rules of the club.
(b) (i) A club licensee shall maintain a minute book that is posted currently by the clublicensee.
(ii) The minute book required by this Subsection (2) shall contain the minutes of aregular or special meeting of the governing body.
(3) A club licensee may admit an individual as a member only on written applicationsigned by the person, subject to:
(a) the person paying an application fee; and
(b) investigation, vote, and approval of a quorum of the governing body.
(4) A club licensee shall:
(a) record an admission of a member in the official minutes of a regular meeting of thegoverning body; and
(b) whether approved or disapproved, file an application as a part of the official recordsof the club licensee.
(5) The spouse of a member of a club licensee has the rights and privileges of themember:
(a) to the extent permitted by the bylaws or house rules of the club licensee; and
(b) except to the extent restricted by this title.
(6) A minor child of a member of a club licensee has the rights and privileges of themember:
(a) to the extent permitted by the bylaws or house rules of the club licensee; and
(b) except to the extent restricted by this title.
(7) A club licensee shall maintain:
(a) a current and complete membership record showing:
(i) the date of application of a proposed member;
(ii) a member's address;
(iii) the date the governing body approved a member's admission;
(iv) the date initiation fees and dues are assessed and paid; and
(v) the serial number of the membership card issued to a member;
(b) a membership list; and
(c) a current record indicating when a member is removed as a member or resigns.
(8) (a) A club licensee shall have bylaws or house rules that include provisionsrespecting the following:
(i) standards of eligibility for members;
(ii) limitation of members, consistent with the nature and purpose of the club;
(iii) the period for which dues are paid, and the date upon which the period expires;
(iv) provisions for removing a member from the club membership for the nonpayment ofdues or other cause;
(v) provisions for guests; and
(vi) application fees and membership dues.
(b) A club licensee shall maintain a current copy of the club licensee's current bylaws andcurrent house rules.
(c) A club licensee shall maintain its bylaws or house rules, and any amendments tothose records, on file with the department at all times.
(9) A club licensee may, in its discretion, allow an individual to be admitted to or use theclub licensed premises as a guest subject to the following conditions:
(a) the individual is allowed to use the club licensee premises only to the extentpermitted by the club licensee's bylaws or house rules;
(b) the individual must be previously authorized by a member of the club who agrees tohost the individual as a guest into the club;
(c) the individual has only those privileges derived from the individual's host for theduration of the individual's visit to the club licensee premises; and
(d) a club licensee or staff of the club licensee may not enter into an agreement orarrangement with a club member to indiscriminately host a member of the general public into theclub licensee premises as a guest.
(10) Notwithstanding Subsection (9), an individual may be allowed as a guest in a clublicensed premises without a host if:
(a) (i) the club licensee is an equity club licensee; and
(ii) the individual is a member of an equity club licensee that has reciprocal guestprivileges with the equity club licensee for which the individual is a guest; or
(b) (i) the club licensee is a fraternal club licensee; and
(ii) the individual is a member of the same fraternal organization as the fraternal clublicensee for which the individual is a guest.
(11) Unless the patron is a member or guest, a club licensee may not:
(a) sell, offer for sale, or furnish an alcoholic product to the patron; or
(b) allow the patron to be admitted to or use the licensed premises.
(12) A minor may not be a member, officer, director, or trustee of a club licensee.
(13) Public advertising related to a club licensee by the following shall clearly identify aclub as being "a club for members":
(a) the club licensee;
(b) staff of the club licensee; or
(c) a person under a contract or agreement with the club licensee.
Enacted by Chapter 276, 2010 General Session