2006 Utah Code - 32A-5-101 — Commission\'s power to license private clubs -- Limitations.

     32A-5-101.   Commission's power to license private clubs -- Limitations.
     (1) Before a private club may sell or allow the consumption of alcoholic beverages on its premises, the private club shall first obtain a license from the commission as provided in this chapter.
     (2) The commission may grant private club licenses to social clubs, recreational, athletic, or kindred associations that desire to maintain premises upon which alcoholic beverages may be stored, sold, served, and consumed.
     (3) At the time the commission grants a private club license the commission shall designate whether the private club license qualifies as a class A, B, C, or D license as defined in Subsections (3)(a) through (d).
     (a) A "class A licensee" is a private club licensee that:
     (i) meets the requirements of this chapter;
     (ii) owns, maintains, or operates a substantial recreational facility in conjunction with a club house such as:
     (A) a golf course; or
     (B) a tennis facility;
     (iii) has at least 50% of the total membership having:
     (A) full voting rights; and
     (B) 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 membership that entitles each member in that class to:
     (A) full voting rights; and
     (B) an equal share of the equity of the club.
     (b) A "class B licensee" is a private club licensee that:
     (i) meets the requirements of this chapter;
     (ii) has no capital stock;
     (iii) exists solely for:
     (A) the benefit of its members and their beneficiaries; and
     (B) any lawful social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic, or religious purpose for the benefit of its members or the public, carried on through voluntary activity of its members in their local lodges;
     (iv) has a representative form of government; and
     (v) has a lodge system in which:
     (A) there is a supreme governing body;
     (B) 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;
     (C) the local lodges are required by the laws of the fraternal to hold regular meetings at least monthly; and
     (D) the local lodges regularly engage in programs involving member participation to implement the purposes of Subsection (3)(b)(iii).
     (c) A "class C licensee" is a private club licensee that:
     (i) meets the requirements of this chapter;
     (ii) is a dining club, as determined by the commission in accordance with Subsection (4); and
     (iii) maintains at least 50% of its total private club business from the sale of food, not

including:
     (A) mix for alcoholic beverages; or
     (B) service charges.
     (d) A "class D licensee" is a private club licensee that:
     (i) meets the requirements of this chapter; and
     (ii) (A) does not meet the requirements of a class A, B, or C license; or
     (B) seeks to qualify as a class D licensee.
     (4) In determining whether an applicant is a dining club under Subsection (3)(c), the commission:
     (a) shall determine whether the applicant maintains at least 50% of its total private club business from the sale of food, not including:
     (i) mix for alcoholic beverages;
     (ii) service charges; or
     (iii) membership and visitor card fees; and
     (b) may consider:
     (i) the square footage and seating capacity of the applicant;
     (ii) what portion of the square footage and seating capacity will be used for a dining area in comparison to the portion that will be used as a bar area;
     (iii) whether full meals including appetizers, main courses, and desserts are served;
     (iv) whether the applicant will maintain adequate on-premise culinary facilities to prepare full meals, except an applicant that is located on the premise of a hotel or resort facility may use the culinary facilities of the hotel or resort facility;
     (v) whether the entertainment provided at the club is suitable for minors; and
     (vi) the club management's ability to manage and operate a dining club including:
     (A) management experience;
     (B) past dining club or restaurant management experience; and
     (C) the type of management scheme employed by the private club.
     (5) (a) A private club or any officer, director, managing agent, or employee of a private club may not store, sell, serve, or permit consumption of alcoholic beverages upon the premises of the club, under a permit issued by local authority or otherwise, unless a private club license has been first issued by the commission.
     (b) Violation of this Subsection (5) is a class B misdemeanor.
     (6) (a) Subject to the other provisions of this Subsection (6), the commission may issue private club licenses at places and in numbers as it considers necessary.
     (b) The total number of private club licenses may not at any time aggregate more than that number determined by dividing the population of the state by 7,300.
     (c) For purposes of this Subsection (6), population shall be determined by:
     (i) the most recent United States decennial or special census; or
     (ii) any other population determination made by the United States or state governments.
     (d) (i) The commission may issue seasonal private club licenses to be established in areas the commission considers necessary.
     (ii) A seasonal private club license shall be for a period of six consecutive months.
     (iii) A private club license issued for operation during a summer time period is known as a "Seasonal A" private club license. The period of operation for a "Seasonal A" club license shall:

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     (A) begin on May 1; and
     (B) end on October 31.
     (iv) A private club license issued for operation during a winter time period is known as a "Seasonal B" private 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 private club licenses that the commission may issue under this section:
     (A) a seasonal private club license is counted as 1/2 of one private club license; and
     (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
     (e) (i) If the location, design, and construction of a hotel may require more than one private club location within the hotel to serve the public convenience, the commission may authorize as many as three private club locations within the hotel under one license if:
     (A) the hotel has a minimum of 150 guest rooms; and
     (B) all locations under the license are:
     (I) within the same hotel facility; and
     (II) on premises which are managed or operated and owned or leased by the licensee.
     (ii) Facilities other than hotels may not have more than one private club location under a single private club license.
     (7) (a) The premises of a private club license may not be established within 600 feet of any public or private school, church, public library, public playground, or park, as measured by the method in Subsection (8).
     (b) The premises of a private club license may not be established within 200 feet of any public or private school, church, public library, public playground, or park, measured in a straight line from the nearest entrance of the proposed outlet to the nearest property boundary of the public or private school, church, public library, public playground, or park.
     (c) The restrictions contained in Subsections (7)(a) and (b) govern unless one of the following exemptions applies:
     (i) with respect to the establishment of a private club license within a city of the third, fourth, or fifth class, a town, or the unincorporated area of a county, the commission may authorize a variance to reduce the proximity requirements of Subsection (7)(a) or (b) if:
     (A) the local governing authority has granted its written consent to the variance;
     (B) alternative locations for establishing a private club license in the community are limited;
     (C) a public hearing has been held in the city, town, or county, and where practical in the neighborhood concerned; and
     (D) after giving full consideration to all of the attending circumstances and the policies stated in Subsections 32A-1-104(3) and (4), the commission determines that establishing the license would not be detrimental to the public health, peace, safety, and welfare of the community;
     (ii) with respect to the establishment of a private club license in any location, the commission may authorize a variance to reduce the proximity requirements of Subsection (7)(a) or (b) in relation to a church:
     (A) if the local governing body of the church in question gives its written consent to the variance;

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     (B) following a public hearing in the city, town, or county and where practical in the neighborhood concerned; and
     (C) after giving full consideration to all of the attending circumstances and the policies stated in Subsections 32A-1-104(3) and (4); or
     (iii) with respect to the premises of a private club license issued by the commission that undergoes a change of ownership, the commission may waive or vary the proximity requirements of Subsection (7)(a) or (b) in considering whether to grant a private club license to the new owner of the premises if:
     (A) the premises previously received a variance reducing the proximity requirements of Subsection (7)(a) or (b); or
     (B) a variance from proximity or distance requirements was otherwise allowed under this title.
     (8) With respect to any public or private school, church, public library, public playground, or park, the 600 foot limitation is measured from the nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the property boundary of the public or private school, church, public library, public playground, or park.
     (9) (a) Nothing in this section prevents the commission from considering the proximity of any educational, religious, and recreational facility, or any other relevant factor in reaching a decision on whether to issue a private club license.
     (b) For purposes of this Subsection (9), "educational facility" includes:
     (i) a nursery school;
     (ii) infant day care center; and
     (iii) a trade and technical school.
     (10) If requested by a private club licensee, the commission may approve a change in the class of private club license in accordance with rules made by the commission.

Amended by Chapter 162, 2006 General Session