32A-5-101 (Repealed 07/01/11) - Commission's power to license clubs -- Limitations.
32A-5-101 (Repealed 07/01/11). Commission's power to license clubs -- Limitations.
(1) As used in this chapter:
(a) "Club license" means a license granted under this chapter.
(b) "Club licensee" means a person granted a club license under this chapter.
(c) "Dining club licensee" means a person who qualifies as a club licensee underSubsection (3)(a)(ii)(C).
(d) "Equity club licensee" means a person who qualifies as a club licensee underSubsection (3)(a)(ii)(A).
(e) "Fraternal club licensee" means a person who qualifies as a club licensee underSubsection (3)(a)(ii)(B).
(f) "Social club licensee" means a person who qualifies as a club licensee underSubsection (3)(a)(ii)(D).
(2) Before a person may sell or allow the consumption of an alcoholic beverage on itspremises as a club licensee, the person shall first obtain a license from the commission asprovided in this chapter.
(3) (a) The commission may grant a club license to a person that:
(i) meets the requirements of this chapter; and
(ii) (A) for an equity club licensee, meets the following requirements:
(I) whether incorporated or unincorporated:
(Aa) is organized and operated solely for a social, recreational, patriotic, or fraternalpurpose;
(Bb) has members;
(Cc) limits access to its premises to a member or a guest of the member; and
(Dd) desires to maintain premises upon which an alcoholic beverage may be stored, soldto, served to, and consumed by a member or a guest of a member;
(II) owns, maintains, or operates a substantial recreational facility in conjunction with aclub house such as:
(Aa) a golf course; or
(Bb) a tennis facility;
(III) has at least 50% of the total membership having:
(Aa) full voting rights; and
(Bb) an equal share of the equity of the club; and
(IV) if there is more than one class of membership, has at least one class of membershipthat entitles each member in that class to:
(Aa) full voting rights; and
(Bb) an equal share of the equity of the club;
(B) for a fraternal club licensee, meets the following requirements:
(I) whether incorporated or unincorporated:
(Aa) is organized and operated solely for a social, recreational, patriotic, or fraternalpurpose;
(Bb) has members;
(Cc) limits access to its premises to a member or a guest of the member; and
(Dd) desires to maintain premises upon which an alcoholic beverage may be stored, soldto, served to, and consumed by a member or a guest of a member;
(II) has no capital stock;
(III) exists solely for:
(Aa) the benefit of its members and their beneficiaries; and
(Bb) a lawful social, intellectual, educational, charitable, benevolent, moral, fraternal,patriotic, or religious purpose for the benefit of its members or the public, carried on throughvoluntary activity of its members in their local lodges;
(IV) has a representative form of government; and
(V) has a lodge system in which:
(Aa) there is a supreme governing body;
(Bb) subordinate to the supreme governing body are local lodges, however designated,into which individuals are admitted as members in accordance with the laws of the fraternal;
(Cc) the local lodges are required by the laws of the fraternal to hold regular meetings atleast monthly;
(Dd) the local lodges regularly engage in one or more programs involving memberparticipation to implement the purposes of Subsection (3)(a)(ii)(B)(III); and
(Ee) owns or leases a building or space in a building used for lodge activities;
(C) for a dining club licensee, meets the following requirements:
(I) is determined by the commission to be a dining club licensee, as part of which thecommission may consider:
(Aa) the square footage and seating capacity of an applicant;
(Bb) what portion of the square footage and seating capacity will be used for a diningarea in comparison to the portion that will be used as a bar area;
(Cc) whether full meals including appetizers, main courses, and desserts are served;
(Dd) whether the applicant will maintain adequate on-premise culinary facilities toprepare full meals, except an applicant that is located on the premise of a hotel or resort facilitymay use the culinary facilities of the hotel or resort facility;
(Ee) whether the entertainment provided at the club is suitable for minors; and
(Ff) the club management's ability to manage and operate a dining club license includingmanagement experience, past dining club licensee or restaurant management experience, and thetype of management scheme employed by the dining club license; and
(II) maintains at least 50% of its total club business from the sale of food, not including:
(Aa) mix for alcoholic beverages; or
(Bb) service charges; or
(D) for a social club licensee:
(I) does not meet the requirements of a license under Subsections (3)(a)(ii)(A) through(C); or
(II) seeks to qualify as a social club licensee.
(b) At the time that the commission grants a club license, the commission shall designatethe type of club license for which the person qualifies.
(4) (a) A club licensee or an officer, director, managing agent, or employee of a clublicensee may not store, sell, serve, or permit consumption of an alcoholic beverage upon thepremises of the club licensee, under a permit issued by local authority or otherwise, unless a clublicense is first granted by the commission.
(b) Violation of this Subsection (4) is a class B misdemeanor.
(5) (a) Subject to the other provisions of this Subsection (5) and Subsection32A-4a-201(2), the commission may grant club licenses at places and in numbers as the
commission considers necessary.
(b) The total number of club licenses may not at any time aggregate more than thatnumber determined by dividing the population of the state by 7,850.
(c) For purposes of this Subsection (5), population shall be determined by:
(i) the most recent United States decennial or special census; or
(ii) another population determination made by the United States or state governments.
(d) (i) The commission may issue seasonal club licenses to be established in areas thecommission considers necessary to:
(A) a dining club licensee; or
(B) a social club licensee.
(ii) A seasonal club license shall be for a period of six consecutive months.
(iii) A club license issued for operation during a summer time period is known as a"Seasonal A" club license. The period of operation for a "Seasonal A" club license shall:
(A) begin on May 1; and
(B) end on October 31.
(iv) A club license issued for operation during a winter time period is known as a"Seasonal B" club license. The period of operation for a "Seasonal B" club license shall:
(A) begin on November 1; and
(B) end on April 30.
(v) In determining the number of club licenses that the commission may issue under thissection:
(A) a seasonal club license is counted as one-half of one club license; and
(B) each "Seasonal A" club license shall be paired with a "Seasonal B" club license.
(e) (i) If the location, design, and construction of a hotel may require more than one clublicense location within the hotel to serve the public convenience, the commission may authorizeas many as three club license locations within the hotel under one club license if:
(A) the hotel has a minimum of 150 guest rooms; and
(B) all locations under the club license are:
(I) within the same hotel facility; and
(II) on premises that are:
(Aa) managed or operated by the club licensee; and
(Bb) owned or leased by the club licensee.
(ii) A facility other than a hotel may not have more than one club license location under asingle club license.
(6) (a) Except as provided in Subsection (6)(b), (c), or (d), the premises of a club licensemay not be established:
(i) within 600 feet of a community location, as measured by the method in Subsection(6)(e); or
(ii) within 200 feet of a community location, measured in a straight line from the nearestentrance of the proposed outlet to the nearest property boundary of the community location.
(b) With respect to the establishment of a club license, the commission may authorize avariance to reduce the proximity requirement of Subsection (6)(a)(i) if:
(i) the local authority grants its written consent to the variance;
(ii) the commission finds that alternative locations for establishing a club license in thecommunity are limited;
(iii) a public hearing is held in the city, town, or county, and where practical in theneighborhood concerned;
(iv) after giving full consideration to all of the attending circumstances and the policiesstated in Subsections 32A-1-104(3) and (4), the commission determines that establishing the clublicense would not be detrimental to the public health, peace, safety, and welfare of thecommunity; and
(v) (A) the community location governing authority gives its written consent to thevariance; or
(B) when written consent is not given by the community location governing authority,the commission finds that the applicant has established that:
(I) there is substantial unmet public demand to consume alcohol in a public settingwithin the geographic boundary of the local authority in which the club licensee is to be located;
(II) there is no reasonably viable alternative for satisfying substantial unmet demanddescribed in Subsection (6)(b)(v)(B)(I) other than through the establishment of a club licensee;and
(III) there is no reasonably viable alternative location within the geographic boundary ofthe local authority in which the club licensee is to be located for establishing a club license tosatisfy the unmet demand described in Subsection (6)(b)(v)(B)(I).
(c) With respect to the establishment of a club license, the commission may authorize avariance that reduces the proximity requirement of Subsection (6)(a)(ii) if:
(i) the community location at issue is:
(A) a public library; or
(B) a public park;
(ii) the local authority grants its written consent to the variance;
(iii) the commission finds that alternative locations for establishing a club license in thecommunity are limited;
(iv) a public hearing is held in the city, town, or county, and where practical in theneighborhood concerned;
(v) after giving full consideration to all of the attending circumstances and the policiesstated in Subsections 32A-1-104(3) and (4), the commission determines that establishing the clublicense would not be detrimental to the public health, peace, safety, and welfare of thecommunity; and
(vi) (A) the community location governing authority gives its written consent to thevariance; or
(B) when written consent is not given by the community location governing authority,the commission finds that the applicant has established that:
(I) there is substantial unmet public demand to consume alcohol in a public settingwithin the geographic boundary of the local authority in which the club licensee is to be located;
(II) there is no reasonably viable alternative for satisfying substantial unmet demanddescribed in Subsection (6)(c)(vi)(B)(I) other than through the establishment of a club license;and
(III) there is no reasonably viable alternative location within the geographic boundary ofthe local authority in which the club licensee is to be located for establishing a club license tosatisfy the unmet demand described in Subsection (6)(c)(vi)(B)(I).
(d) With respect to the premises of a club license issued by the commission that
undergoes a change of ownership, the commission may waive or vary the proximity requirementsof Subsection (6)(a) in considering whether to grant a club license to the new owner of thepremises if:
(i) (A) the premises previously received a variance reducing the proximity requirement ofSubsection (6)(a)(i); or
(B) the premises received a variance reducing the proximity requirement of Subsection(6)(a)(ii) on or before May 4, 2008; or
(ii) a variance from proximity requirements was otherwise allowed under this title.
(e) The 600 foot limitation described in Subsection (6)(a)(i) is measured from the nearestentrance of the outlet by following the shortest route of ordinary pedestrian travel to the propertyboundary of the community location.
(7) (a) Nothing in this section prevents the commission from considering the proximityof any educational, religious, and recreational facility, or any other relevant factor in reaching adecision on whether to issue a club license.
(b) For purposes of this Subsection (7), "educational facility" includes:
(i) a nursery school;
(ii) infant day care center; and
(iii) a trade and technical school.
(8) If requested by a club licensee, the commission may approve a change in the type ofclub license in accordance with rules made by the commission.
(9) To the extent not prohibited by law other than this chapter, this chapter does notprevent a dining club licensee or social club licensee from restricting access to the club licensepremises on the basis of an individual:
(a) paying a fee; or
(b) agreeing to being on a list of individuals who have access to the club licensepremises.
Repealed by Chapter 276, 2010 General Session
Amended by Chapter 383, 2009 General Session