32B-18-206. Operational requirements for change of ownership or location.

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Effective 6/1/2022

(a)Except as provided in Subsections (1)(b) and

(c), operations of an alcohol licensee shall begin within 30 days after the day on which the commission approves a change of ownership for the alcohol license.

(b)The department may grant an extension of the time period described in Subsection (1)(a) for a period not to exceed the greater of:

(i)30 days; or

(ii)the number of days until the day on which the commission holds the commission's next regularly scheduled commission meeting.

(c)After the department authorizes an extension described in Subsection (1)(b) , the commission may grant one or more additional extensions if:

(i)the alcohol licensee demonstrates to the commission that the alcohol licensee cannot begin operations because the alcohol licensee:

(A)is improving the licensed premises;

(B)has obtained a building permit for the improvements described in Subsection (1)(c)(i)(A) , if the respective local authority requires a building permit for the improvements; and

(C)is working expeditiously to complete the improvements to the licensed premises; or

(ii)the commission determines that circumstances beyond the control of the alcohol licensee negate the licensee's ability to begin operations in a timely manner.

(2)An alcohol licensee is considered to have begun operations of the alcohol license if the alcohol licensee:

(a)has a licensed premises that is open for business;

(i)sells, offers for sale, or furnishes an alcoholic product to a patron on the licensed premises described in Subsection (2)(a) ;

(ii)manufactures an alcoholic product on the licensed premises described in Subsection (2)(a) ;

(iii)engages in an industrial or manufacturing pursuit containing alcohol on the licensed premises described in Subsection (2)(a) ; or

(iv)warehouses liquor on the licensed premises described in Subsection (2)(a) ; and

(c)has a valid business license.

(3)If an alcohol licensee fails to begin operations of the alcohol license within the time period required by Subsection

(1), the following are automatically forfeited effective immediately:

(a)the alcohol license; and

(b)the fee described in Section 32B-18-207 .

(a)Except as provided in Subsection (4)(b) , if the commission approves a change of ownership, the new owner of the alcohol license shall begin operations of the alcohol license at the location to which the alcohol license applies before the new owner may move the alcohol license to a different location in accordance with Part 3, Alcohol License Change of Location .

(b)Subsection (4)(a) does not apply to a new owner of an alcohol license if the commission determines that a bona fide exigent circumstance exists that warrants a change in location before operations begin.

(5)Notwithstanding Subsection

(1), the commission may not issue a conditional license unless the requirements of Section 32B-5-205 are met, except that the time periods required by this section supersede the time period provided in Section 32B-5-205 .

Renumbered and Amended by Chapter 447 , 2022 General Session