32B-1-208. Percentage lease agreements.

290 words·~1 min read·/ut/title-32b/chapter-1/32b-1-208·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 6/25/2020

(1)As used in this section:

(a)"Percentage lease agreement" means a lease agreement in which the lessee:

(i)is a retail licensee; and

(ii)pays the lessor:

(A)a base rent; and

(B)percentage rent.

(b)"Percentage rent" means a percentage:

(i)agreed upon between a lessor and lessee; and

(ii)of the total sales revenue that:

(A)exceed a fixed dollar amount of sales revenue; and

(B)the lessee earns while doing business on the rental premises.

(a)The parties to a percentage lease agreement shall submit a copy of the percentage lease agreement to the department.

(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:

(a)the maximum percentage of revenue from alcohol sales a percentage lease agreement may require; and

(b)the procedure for submitting a percentage lease agreement under Subsection

(2).

(a)The provisions of this section do not apply to a percentage lease agreement in which the lessee is an airport lounge licensee.

(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.

Amended by Chapter 3 , 2020 Special Session 5