Utah Admin. Code R82-5-102 - Licensing, Ownership, and Transfer of License
(1) This rule is adopted pursuant to Section
32B-5-310, which authorizes the
Department to make rules governing requirements for interim alcoholic beverage
management agreements.
(2) Licenses
are issued to persons. A licensee must communicate any contemplated action or
transaction that may alter an organizational structure or ownership interest of
the person to whom a license is issued to the Department so staff may ensure
there is no violation of Section 32B-5-310.
(3) An interim alcoholic beverage management
agreement is required if a buyer will be performing the day-to-day operations
of the business before the Commission approves the transfer of the license from
seller to buyer.
(4)
(a) Before a retail licensee enters into an
interim alcoholic beverage management agreement, it shall provide the proposed
interim alcoholic beverage management agreement to the Department for its
approval.
(b) The Department shall
create a checklist of information that an interim alcoholic beverage management
agreement must contain.
(c) The
Department shall review a proposed interim alcoholic beverage management
agreement and, no later than 15 business days after the day on which the
agreement is received by the Department:
(i)
approve the interim alcoholic beverage management agreement if it contains all
the necessary information; or
(ii)
return the proposed interim alcoholic beverage management agreement to the
licensee, if the agreement is lacking in information or specificity, with
guidance on how to remedy any errors or omissions.
(5) Once an interim alcoholic
beverage management agreement is approved by the Department, the seller may
allow the buyer to use their license to purchase alcoholic product from the
Department, but revenue from the sale of alcohol during the transition period
must be retained by the seller, less the cost of reimbursing the buyer for the
cost of the alcoholic product paid to the Department.
(6) The seller must maintain the required
bond, insurance, and business license during the transition period, as these
are statutory requirements to hold a license, but the buyer may agree to
reimburse the seller for any necessary costs incurred to maintain the bond,
insurance, and business license.
(7) Nothing in this rule authorizes a
licensee to close business without approval from the Department or Commission,
as required by statute.
Notes
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