Section 205 – Management agreements — Inventory transfers.

• (1)
  • (a) A management agreement may provide for the sharing of revenue from a business utilizing an alcohol license if, regardless of which party holds the alcohol license, all parties to the management agreement qualify under Section 32B-1-304 to hold the license.
  • (b) The parties to a management agreement shall submit to the department:
    • (i) a copy of the management agreement; and
    • (ii) any other information the department requires.
  • (c) If there is a material change to the management agreement submitted to the department under Subsection (1)(b), the parties to the management agreement shall submit to the department the following within 30 days after the day on which the change occurs:
    • (i) a copy of the changed management agreement; and
    • (ii) any other information the department requires.

• (2) Notwithstanding any other provision of this title, in connection with a change of ownership described in Section 32B-18-202 or an asset sale of an alcohol licensee, the parties to the transaction may enter into an inventory transfer agreement.

• (3) In accordance with this section and Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules governing the requirements of:
  • (a) a management agreement; or
  • (b) an inventory transfer agreement.

Enacted by Chapter 447, 2022 General Session