Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Premises: means a building, enclosure, or room used in connection with the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic product, unless otherwise defined in this title or rules made by the commission. See Utah Code 32B-1-102
be organized and operated solely for a social, recreational, patriotic, or fraternal purpose;
(ii)
have members;
(iii)
limit access to its licensed premises to a member or a guest of the member; and
(iv)
desire to maintain premises upon which an alcoholic product may be stored, sold to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
(b)
except as provided in Subsection (8), own, maintain, or operate a substantial recreational facility in conjunction with a club house such as:
(i)
a golf course; or
(ii)
a tennis facility;
(c)
have at least 50% of the total membership having an equal share of the equity of the entity or a right to redemption or refund at the equal value; and
(d)
if there is more than one class of membership, have at least one class of membership that entitles each member in that class to an equal share of the equity of the entity or a right to redemption or refund at the equal value.
(2)
To obtain a fraternal license, in addition to meeting the other requirements of this part, a person shall:
(a)
whether incorporated or unincorporated:
(i)
be organized and operated solely for a social, recreational, patriotic, or fraternal purpose;
(ii)
have members;
(iii)
limit access to its licensed premises to a member or a guest of the member; and
(iv)
desire to maintain premises upon which an alcoholic product may be stored, sold to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
(b)
have no capital stock;
(c)
exist solely for:
(i)
the benefit of its members and their beneficiaries; and
(ii)
a 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;
(d)
have a representative form of government;
(e)
have a lodge system in which:
(i)
there is a supreme governing body;
(ii)
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;
(iii)
the local lodges are required by the laws of the fraternal to hold regular meetings at least monthly; and
(iv)
the local lodges regularly engage in one or more programs involving member participation to implement the purposes of Subsection (2)(c); and
(f)
own or lease a building or space in a building used for lodge activities.
(3)
To obtain a dining club license, in addition to meeting the other requirements of this part, a person shall:
(a)
maintain at least the following percentages of its total club business from the sale of food, not including mix for alcoholic products, or service charges:
(i)
for a dining club license that is issued as an original license on or after July 1, 2011, 60%; and
(ii)
for a dining club license that is issued on or before June 30, 2011:
(A)
50% on or before June 30, 2012; and
(B)
60% on and after July 1, 2012; and
(b)
obtain a determination by the commission that the person will operate as a dining club licensee, as part of which the commission may consider:
(i)
the square footage and seating capacity of the premises;
(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 lounge or bar area;
(iii)
whether full meals including appetizers, main courses, and desserts are served;
(iv)
whether the person will maintain adequate on-premise culinary facilities to prepare full meals, except a person who 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 premises is suitable for minors; and
(vi)
the club management’s ability to manage and operate a dining club license including:
(A)
management experience;
(B)
past dining club licensee or restaurant management experience; and
(C)
the type of management scheme used by the dining club license.
(4)
To obtain a bar license, a person is required to meet the requirements of this part except those listed in Subsection (1), (2), or (3).
(5)
(a)
At the time that the commission issues a bar establishment license, the commission shall designate the type of bar establishment license for which the person qualifies.
(b)
If requested by a bar establishment licensee, the commission may approve a change in the type of bar establishment license in accordance with rules made by the commission.
(6)
To the extent not prohibited by law, this part does not prevent a dining club licensee or bar licensee from restricting access to the licensed premises 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 licensed premises.
(7)
(a)
(i)
On or after July 1, 2017, the commission may not issue or renew a dining club license.
(ii)
No later than July 1, 2018, the department shall convert each dining club license to a full-service restaurant license or a bar license in accordance with the provisions of this Subsection (7).
(b)
(i)
(A)
A person licensed as a dining club on July 1, 2017, shall notify the department no later than May 31, 2018, whether the person elects to be licensed as a full-service restaurant or a bar.
(B)
No later than July 1, 2018, the department shall convert a dining club license to a full-service restaurant license or a bar license in accordance with the dining club licensee’s election under Subsection (7)(b)(i)(A).
(ii)
If a dining club licensee fails to timely notify the department in accordance with Subsection (7)(b)(i), the dining club license is automatically converted to a full-service restaurant license on July 1, 2018.
(c)
Subject to Section 32B-6-404.1, after a dining club license converts to a full-service restaurant license or a bar license, the retail licensee shall operate under the provisions that govern the full-service restaurant license or the bar license, as applicable.
(d)
After a dining club license converts to a full-service restaurant license or a bar license in accordance with this Subsection (7):
(i)
the full-service restaurant license is not considered in determining the total number of full-service restaurant licenses available under Section 32B-6-203; or
(ii)
the bar license is not considered in determining the total number of bar establishment licenses available under Section 32B-6-403.
(e)
Except as provided in Subsections (7)(a) and (b), before July 1, 2018, the commission may not issue a full-service restaurant license, a limited-service restaurant license, or a beer-only restaurant license to a person who holds a dining club license on May 9, 2017, for the same premises.
(f)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules establishing a procedure by which a dining club licensee elects and converts to a full-service restaurant licensee or a bar licensee under this Subsection (7).
(8)
Subsection (1)(b) does not apply to a person who renews an equity license issued before January 1, 2020, if the person did not meet the requirements under Subsection (1)(b) at the time the equity license was issued.
