Utah Code 32B-1-208. Percentage lease agreements
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(1) As used in this section:
Terms Used In Utah Code 32B-1-208
- Airport lounge: means a business location:(1)(a) at which an alcoholic product is sold at retail for consumption on the premises; and(1)(b) that is located at an international airport or domestic airport. See Utah Code 32B-1-102
- Commission: means the Alcoholic Beverage Services Commission created in Section
32B-2-201 . See Utah Code 32B-1-102- Department: means the Department of Alcoholic Beverage Services created in Section
32B-2-203 . See Utah Code 32B-1-102- 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
- Licensee: means a person who holds a license. See Utah Code 32B-1-102
- 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
(1)(a) “Percentage lease agreement” means a lease agreement in which the lessee:(1)(a)(i) is a retail licensee; and(1)(a)(ii) pays the lessor:(1)(a)(ii)(A) a base rent; and(1)(a)(ii)(B) percentage rent.(1)(b) “Percentage rent” means a percentage:(1)(b)(i) agreed upon between a lessor and lessee; and(1)(b)(ii) of the total sales revenue that:(1)(b)(ii)(A) exceed a fixed dollar amount of sales revenue; and(1)(b)(ii)(B) the lessee earns while doing business on the rental premises. - Commission: means the Alcoholic Beverage Services Commission created in Section
(2)
(2)(a) The parties to a percentage lease agreement shall submit a copy of the percentage lease agreement to the department.
(2)(b) If there is a material change to the percentage lease agreement submitted to the department under Subsection (2)(a), the parties to the percentage lease agreement shall promptly submit a copy of the changed percentage lease agreement to the department.
(3) If a percentage lease agreement requires a retail licensee to pay the lessor a percentage rent of 6% or less, the department may not conduct any further investigation into the percentage lease agreement.
(4) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing:
(4)(a) the maximum percentage of revenue from alcohol sales a percentage lease agreement may require; and
(4)(b) the procedure for submitting a percentage lease agreement under Subsection (2).
(5)
(5)(a) The provisions of this section do not apply to a percentage lease agreement in which the lessee is an airport lounge licensee.
(5)(b) Nothing in this title prohibits an airport lounge licensee from entering into a percentage lease agreement, regardless of the percentage rent specified in the percentage lease agreement.