Section 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.Utah Admin. Code R82-5-102
Adopted by Utah State Bulletin Number 2020-05, effective 2/25/2020Amended by Utah State Bulletin Number 2020-21, effective 10/27/2020