§ 32B-6-407 — Specific operational requirements for equity license or fraternal license.

(1) As used in this section, "equity or fraternal licensee" means an equity licensee or fraternal licensee.
(2) (2)(a) An equity or fraternal licensee shall have a governing body that:
(2)(a)(i) consists of three or more members of the equity or fraternal licensee; and
(2)(a)(ii) holds regular meetings to:

(2)(a)(ii)(A) review membership applications; and
(2)(a)(ii)(B) conduct other business as required by the bylaws or house rules of the equity or fraternal licensee.
(2)(b) (2)(b)(i) An equity or fraternal licensee shall maintain a minute book that is posted currently by the equity or fraternal licensee.
(2)(b)(ii) The minute book required by this Subsection (2) shall contain the minutes of a regular or special meeting of the governing body.
(3) An equity or fraternal licensee may admit an individual as a member only on written application signed by the person, subject to:

(3)(a) the person paying an application fee; and
(3)(b) investigation, vote, and approval of a quorum of the governing body.
(4) An equity or fraternal licensee shall:

(4)(a) record an admission of a member in the official minutes of a regular meeting of the governing body; and
(4)(b) whether approved or disapproved, file an application as a part of the official records of the equity or fraternal licensee.
(5) The spouse of a member of an equity or fraternal licensee has the rights and privileges of the member:

(5)(a) to the extent permitted by the bylaws or house rules of the equity or fraternal licensee; and
(5)(b) except to the extent restricted by this title.
(6) A minor child of a member of an equity or fraternal licensee has the rights and privileges of the member:

(6)(a) to the extent permitted by the bylaws or house rules of the equity or fraternal licensee; and
(6)(b) except to the extent restricted by this title.
(7) An equity or fraternal licensee shall maintain:

(7)(a) a current and complete membership record showing:
(7)(a)(i) the date of application of a proposed member;
(7)(a)(ii) a member's address;
(7)(a)(iii) the date the governing body approved a member's admission;
(7)(a)(iv) the date initiation fees and dues are assessed and paid; and
(7)(a)(v) the serial number of the membership card issued to a member;
(7)(b) a membership list; and
(7)(c) a current record indicating when a member is removed as a member or resigns.
(8) (8)(a) An equity or fraternal licensee shall have bylaws or house rules that include provisions respecting the following:
(8)(a)(i) standards of eligibility for members;
(8)(a)(ii) limitation of members, consistent with the nature and purpose of the equity or fraternal licensee;
(8)(a)(iii) the period for which dues are paid, and the date upon which the period expires;
(8)(a)(iv) provisions for removing a member from the equity or fraternal licensee's membership for the nonpayment of dues or other cause;
(8)(a)(v) provisions for guests; and
(8)(a)(vi) application fees and membership dues.
(8)(b) An equity or fraternal licensee shall maintain a current copy of the equity or fraternal licensee's current bylaws and current house rules.
(8)(c) An equity or fraternal licensee shall maintain its bylaws or house rules, and any amendments to those records, on file with the department at all times.
(9) An equity or fraternal licensee may, in its discretion, allow an individual to be admitted to or use the licensed premises as a guest subject to the following conditions:

(9)(a) the individual is allowed to use the equity or fraternal licensee premises only to the extent permitted by the equity or fraternal licensee's bylaws or house rules;
(9)(b) the individual shall be previously authorized by a member of the equity or fraternal licensee who agrees to host the individual as a guest;
(9)(c) the individual has only those privileges derived from the individual's host for the duration of the individual's visit to the equity or fraternal licensee premises; and
(9)(d) an equity or fraternal licensee or staff of the equity or fraternal licensee may not enter into an agreement or arrangement with a member of the equity or fraternal licensee to indiscriminately host a member of the general public into the equity or fraternal licensee premises as a guest.
(10) Notwithstanding Subsection (9), an individual may be allowed as a guest in an equity or fraternal licensed premises without a host if:

(10)(a) (10)(a)(i) the equity or fraternal licensee is an equity licensee; and
(10)(a)(ii) the individual is a member of an equity licensee that has reciprocal guest privileges with the equity licensee for which the individual is a guest;
(10)(b) (10)(b)(i) the equity or fraternal licensee is a fraternal licensee; and
(10)(b)(ii) the individual is a member of the same fraternal organization as the fraternal licensee for which the individual is a guest; or
(10)(c) (10)(c)(i) the equity or fraternal licensee is a fraternal licensee that holds the fraternal license on July 1, 2013;
(10)(c)(ii) the equity or fraternal licensee's bylaws permit guests in the equity or fraternal licensed premises without a host except that a minor may not be admitted as a guest without a host; and
(10)(c)(iii) the equity or fraternal licensee maintains 60% of its total business from the sale of food, not including mix for alcoholic products, or service charges.
(11) Unless the patron is a member or guest, an equity or fraternal licensee may not:

(11)(a) sell, offer for sale, or furnish an alcoholic product to the patron; or
(11)(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 an equity or fraternal licensee.

Legislative History

Amended by Chapter 455, 2017 General Session