Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 250 (2016GS)

Sponsor

Sen. Stevenson, J.

Final action

Governor Signed 3/18/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends the provision related to bringing alcoholic products onto or removing alcoholic products from premises;
• modifies licensing requirements of an on-premise beer retailer that is not a tavern;
• modifies certain quotas;
• addresses licensing fees;
• amends the operational requirements for transferees;
• repeals the requirement that a person file a notice of intended transfer and makes conforming amendments;
• amends notice requirements related to notice of a transfer of a license;
• amends the application process for transfers; and
• makes technical changes.

Every vote on this bill

Bill text

ALCOHOLIC BEVERAGE POLICY AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jerry W. Stevenson
House Sponsor: 
Brad R. Wilson
LONG TITLE
General Description:
This bill modifies provisions related to alcoholic policies.
Highlighted Provisions:
This bill:
▸ amends the provision related to bringing alcoholic products onto or removing
alcoholic products from premises;
▸ modifies licensing requirements of an on-premise beer retailer that is not a tavern;
▸ modifies certain quotas;
▸ addresses licensing fees;
▸ amends the operational requirements for transferees;
▸ repeals the requirement that a person file a notice of intended transfer and makes
conforming amendments;
▸ amends notice requirements related to notice of a transfer of a license;
▸ amends the application process for transfers; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
32B-5-307
, as last amended by Laws of Utah 2011, Chapters 307 and 334
32B-6-203
, as last amended by Laws of Utah 2012, Fourth Special Session, Chapter 1
32B-6-303
, as last amended by Laws of Utah 2012, Fourth Special Session, Chapter 1
32B-6-304
, as last amended by Laws of Utah 2012, Fourth Special Session, Chapter 1
32B-6-603
, as last amended by Laws of Utah 2011, Chapter 334
32B-6-703
, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
32B-6-803
, as enacted by Laws of Utah 2011, Chapter 334
32B-8a-202
, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
Revisor Instructions, Laws of Utah 2013, Chapter 349
32B-8a-203
, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
Revisor Instructions, Laws of Utah 2013, Chapter 349
32B-8a-302
, as and further amended by Revisor Instructions, Laws of Utah 2013,
Chapter 349
32B-8a-401
, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
Revisor Instructions, Laws of Utah 2013, Chapter 349
REPEALS:
32B-8a-301
, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
Revisor Instructions, Laws of Utah 2013, Chapter 349
32B-8a-403
, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
Revisor Instructions, Laws of Utah 2013, Chapter 349
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
32B-5-307
 is amended to read:
32B-5-307.
Bringing alcoholic product onto or removing alcoholic product from
premises.
(1) Except as provided in Subsection (3):
(a) A person may not bring onto the licensed premises of a retail licensee an alcoholic
product for on-premise consumption.
(b) A retail licensee may not allow a person to:
(i) bring onto licensed premises an alcoholic product for on-premise consumption; or
(ii) consume an alcoholic product brought onto the licensed premises by a person other
than the retail licensee.
(c) A retail licensee may not sell, offer for sale, or furnish an alcoholic product through
a window or door to a location off the licensed premises or to a vehicular traffic area.
(2) Except as provided in Subsection (3):
(a) A person may not carry from a licensed premises of a retail licensee an open
container that:
(i) is used primarily for drinking purposes; and
(ii) contains an alcoholic product.
(b) A retail licensee may not permit a patron to carry from the licensed premises an
open container described in Subsection (2)(a).
(c) Except as provided in Subsection (3)(d) or Subsection 
32B-4-415
(5):
(i) a person may not carry from a licensed premises of a retail licensee a sealed
container of liquor that has been purchased from the retail licensee; and
(ii) a retail licensee may not permit a patron to carry from the licensed premises a
sealed container of liquor that has been purchased from the retail licensee.
(3) (a) A patron may bring a bottled wine onto the premises of a retail licensee for
on-premise consumption if:
(i) permitted by the retail licensee; and
(ii) the retail licensee is authorized to sell, offer for sale, or furnish wine.
(b) If a patron carries bottled wine onto the licensed premises of a retail licensee, the
patron shall deliver the bottled wine to a server or other representative of the retail licensee
upon entering the licensed premises.
(c) A retail licensee authorized to sell, offer for sale, or furnish wine, may provide a
wine service for a bottled wine carried onto the licensed premises in accordance with this
Subsection (3).
(d) A patron may remove from a licensed premises the unconsumed contents of a bottle
of wine purchased in the licensed premises, or brought onto the licensed premises in
accordance with this Subsection (3), only if before removal the bottle is recorked or recapped.
Section 2. Section 
32B-6-203
 is amended to read:
32B-6-203.
Commission's power to issue full-service restaurant license.
(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
an alcoholic product on its premises as a full-service restaurant, the person shall first obtain a
full-service restaurant license from the commission in accordance with this part.
(2) The commission may issue a full-service restaurant license to establish full-service
restaurant licensed premises at places and in numbers the commission considers proper for the
storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises
operated as a full-service restaurant.
(3) Subject to Section 
32B-1-201
:
(a) The commission may not issue a total number of full-service restaurant licenses that
at any time exceeds the number determined by dividing the population of the state by [
4,534
]
4,467
.
(b) The commission may issue a seasonal full-service restaurant license in accordance
with Section 
32B-5-206
.
(c) (i) If the location, design, and construction of a hotel may require more than one
full-service restaurant sales location within the hotel to serve the public convenience, the
commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as
many as three full-service restaurant locations within the hotel under one full-service restaurant
license if:
(A) the hotel has a minimum of 150 guest rooms; and
(B) the locations under the full-service restaurant license are:
(I) within the same hotel; and
(II) on premises that are managed or operated, and owned or leased, by the full-service
restaurant licensee.
(ii) A facility other than a hotel shall have a separate full-service restaurant license for
each full-service restaurant where an alcoholic product is sold, offered for sale, or furnished.
(4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
full-service restaurant license for premises that do not meet the proximity requirements of
Section 
32B-1-202
.
(b) With respect to the premises of a full-service restaurant license issued by the
commission that undergoes a change of ownership, the commission shall waive or vary the
proximity requirements of Subsection 
32B-1-202
(2) in considering whether to issue a
full-service restaurant license to the new owner of the premises if:
(i) when a full-service restaurant license was issued to a previous owner, the premises
met the proximity requirements of Subsection 
32B-1-202
(2);
(ii) the premises has had a full-service restaurant license at all times since the
full-service restaurant license described in Subsection (4)(b)(i) was issued without a variance;
and
(iii) the community location was located within the proximity requirements of
Subsection 
32B-1-202
(2) after the day on which the full-service restaurant license described in
Subsection (4)(b)(i) was issued.
Section 3. Section 
32B-6-303
 is amended to read:
32B-6-303.
Commission's power to issue limited-service restaurant license.
(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
wine, heavy beer, or beer on its premises as a limited-service restaurant, the person shall first
obtain a limited-service restaurant license from the commission in accordance with this part.
(2) (a) The commission may issue a limited-service restaurant license to establish
limited-service restaurant licensed premises at places and in numbers the commission considers
proper for the storage, sale, offer for sale, furnishing, and consumption of wine, heavy beer, or
beer on premises operated as a limited-service restaurant.
(b) A person may not sell, offer for sale, furnish, or allow the consumption of the
following on the licensed premises of a limited-service restaurant licensee:
(i) spirituous liquor; or
(ii) a flavored malt beverage.
(3) Subject to Section 
32B-1-201
:
(a) The commission may not issue a total number of limited-service restaurant licenses
that at any time exceeds the number determined by dividing the population of the state by
[
7,493
] 
6,817
.
(b) The commission may issue a seasonal limited-service restaurant license in
accordance with Section 
32B-5-206
.
(c) (i) If the location, design, and construction of a hotel may require more than one
limited-service restaurant sales location within the hotel to serve the public convenience, the
commission may authorize the sale of wine, heavy beer, and beer at as many as three
limited-service restaurant locations within the hotel under one limited-service restaurant license
if:
(A) the hotel has a minimum of 150 guest rooms; and
(B) the locations under the limited-service restaurant license are:
(I) within the same hotel; and
(II) on premises that are managed or operated, and owned or leased, by the
limited-service restaurant licensee.
(ii) A facility other than a hotel shall have a separate limited-service restaurant license
for each limited-service restaurant where wine, heavy beer, or beer is sold, offered for sale, or
furnished.
(4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
limited-service restaurant license for premises that do not meet the proximity requirements of
Section 
32B-1-202
.
(b) With respect to the premises of a limited-service restaurant license issued by the
commission that undergoes a change of ownership, the commission shall waive or vary the
proximity requirements of Subsection 
32B-1-202
(2) in considering whether to issue a
limited-service restaurant license to the new owner of the premises if:
(i) when a limited-service restaurant license was issued to a previous owner, the
premises met the proximity requirements of Subsection 
32B-1-202
(2);
(ii) the premises has had a limited-service restaurant license at all times since the
limited-service restaurant license described in Subsection (4)(b)(i) was issued without a
variance; and
(iii) the community location was located within the proximity requirements of
Subsection 
32B-1-202
(2) after the day on which the limited-service restaurant license
described in Subsection (4)(b)(i) was issued.
Section 4. Section 
32B-6-304
 is amended to read:
32B-6-304.
Specific licensing requirements for limited-service restaurant license.
(1) To obtain a limited-service restaurant license a person shall comply with Chapter 5,
Part 2, Retail Licensing Process.
(2) (a) A limited-service restaurant license expires on October 31 of each year.
(b) To renew a person's limited-service restaurant license, a person shall comply with
the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
September 30.
(3) (a) The nonrefundable application fee for a limited-service restaurant license is
$330.
(b) The initial license fee for a limited-service restaurant license is [
$825
] 
$1,275
.
(c) The renewal fee for a limited-service restaurant license is [
$605
] 
$750
.
(4) The bond amount required for a limited-service restaurant license is the penal sum
of $5,000.
Section 5. Section 
32B-6-603
 is amended to read:
32B-6-603.
Commission's power to issue on-premise banquet license -- Contracts
as host.
(1) (a) Before a person may store, sell, offer for sale, furnish, or allow the consumption
of an alcoholic product in connection with the person's banquet and room service activities at
one of the following, the person shall first obtain an on-premise banquet license in accordance
with this part:
(i) a hotel;
(ii) a resort facility;
(iii) a sports center; or
(iv) a convention center.
(b) This part does not prohibit an alcoholic product on the premises of a person listed
in Subsection (1)(a) to the extent otherwise permitted by this title.
(c) This section does not prohibit a person who applies for an on-premise banquet
license to also apply for a package agency if otherwise qualified.
(2) The commission may issue an on-premise banquet license to establish on-premise
banquet licensees in the numbers the commission considers proper for the storage, sale, offer
for sale, furnishing, and consumption of an alcoholic product at a banquet or as part of room
service activities operated by an on-premise banquet licensee.
(3) Subject to Section 
32B-1-201
, the commission may not issue a total number of
on-premise banquet licenses that at any time exceed the number determined by dividing the
population of the state by [
30,000
] 
28,765
.
(4) Pursuant to a contract between the host of a banquet and an on-premise banquet
licensee:
(a) the host of the banquet may request an on-premise banquet licensee to provide an
alcoholic product served at the banquet; and
(b) an on-premise banquet licensee may provide an alcoholic product served at the
banquet.
(5) At a banquet, an on-premise banquet licensee may furnish an alcoholic product:
(a) without charge to a patron at a banquet, except that the host of the banquet shall pay
for an alcoholic product furnished at the banquet; or
(b) with a charge to a patron at the banquet.
Section 6. Section 
32B-6-703
 is amended to read:
32B-6-703.
Commission's power to issue on-premise beer retailer license.
(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
beer on the premises as an on-premise beer retailer, the person shall first obtain an on-premise
beer retailer license from the commission in accordance with this part.
(2) (a) The commission may issue an on-premise beer retailer license to establish
on-premise beer retailer licensed premises at places and in numbers as the commission
considers proper for the storage, sale, offer for sale, furnishing, and consumption of beer on
premises operated as an on-premise beer retailer.
(b) At the time that the commission issues an on-premise beer retailer license, the
commission shall designate whether the on-premise beer retailer is a tavern.
(c) The commission may change its designation of whether an on-premise beer retailer
is a tavern in accordance with rules made by the commission.
(d) (i) In determining whether an on-premise beer retailer is a tavern, the commission
shall determine whether the on-premise beer retailer will engage primarily in the retail sale of
beer for consumption on the establishment's premises.
(ii) In making a determination under this Subsection (2)(d), the commission shall
consider:
(A) whether the on-premise beer retailer will operate as one of the following:
(I) a beer bar;
(II) a parlor;
(III) a lounge;
(IV) a cabaret; or
(V) a nightclub;
(B) if the on-premise beer retailer will operate as described in Subsection (2)(d)(ii)(A):
(I) whether the on-premise beer retailer will sell food in the establishment; and
(II) if the on-premise beer retailer sells food, whether the revenue from the sale of beer
will exceed the revenue of the sale of food;
(C) whether full meals including appetizers, main courses, and desserts will be served;
(D) the square footage and seating capacity of the premises;
(E) what portion of the square footage and seating capacity will be used for a dining
area in comparison to the portion that will be used as a lounge or bar area;
(F) whether the person will maintain adequate on-premise culinary facilities to prepare
full meals, except a person that is located on the premises of a hotel or resort facility may use
the culinary facilities of the hotel or resort facility;
(G) whether the entertainment provided on the premises of the beer retailer will be
suitable for minors; and
(H) the beer retailer management's ability to manage and operate an on-premise beer
retailer license including:
(I) management experience;
(II) past beer retailer management experience; and
(III) the type of management scheme that will be used by the beer retailer.
(e) On or after March 1, 2012:
(i) To be licensed as an on-premise beer retailer that is not a tavern, a person shall:
(A) maintain at least 70% of the person's total gross revenues from business directly
related to a recreational amenity on or directly adjoining the licensed premises of the beer
retailer
, except that a person may include gross revenue from business directly related to a
recreational amenity that is owned or operated by a political subdivision if the person has a
contract meeting the requirements of Subsection (2)(e)(v) with the political subdivision
; or
(B) have a recreational amenity on or directly adjoining the licensed premises of the
beer retailer and maintain at least 70% of the person's total gross revenues from the sale of
food.
(ii) The commission may not license a person as an on-premise beer retailer if the
person does not:
(A) meet the requirements of Subsection (2)(e)(i); or
(B) operate as a tavern.
(iii) (A) A person licensed as an on-premise beer retailer that is not a tavern as of July
1, 2011 shall notify the department by no later than August 1, 2011, whether effective March 1,
2012, the person will seek to be licensed as a beer-only restaurant licensee, a tavern, or an
on-premise beer retailer that meets the requirements of Subsection (2)(e)(i).
(B) If an on-premise beer retailer fails to notify the department as required by
Subsection (2)(e)(iii)(A), the on-premise beer retailer's license expires as of February 29, 2012,
and to operate as an on-premise beer retailer after February 29, 2012, the on-premise beer
retailer is required to apply as a new licensee, and any bar or bar structure on the premises of an
on-premise beer retailer license that is not a tavern and does not meet the requirements of
Subsection (2)(e)(i) will not be grandfathered under Subsection 
32B-6-902
(1).
(iv) A person who, after August 1, 2011, applies for an on-premise beer retailer license
that is not a tavern and does not meet the requirements of Subsection (2)(e)(i), may not have or
construct facilities for the dispensing or storage of an alcoholic product that do not meet the
requirements of Subsection 
32B-6-905
(12)(a)(ii).
(v) A contract described in Subsection (2)(e)(i)(A) shall:
(A) allow the beer retailer to include the total gross revenue from operations of the
recreational amenity in the beer retailer's total gross receipts for purposes of Subsection
(2)(e)(i)(A); and
(B) give the department the authority to audit financial information of the political
subdivision to the extent necessary to confirm that the requirements of Subsection (2)(e)(i)(A)
are met.
(3) Subject to Section 
32B-1-201
:
(a) The commission may not issue a total number of on-premise beer retailer licenses
that are taverns that at any time exceeds the number determined by dividing the population of
the state by [
54,147
] 
73,666
.
(b) The commission may issue a seasonal on-premise beer retailer license for a tavern
in accordance with Section 
32B-5-206
.
(4) (a) Unless otherwise provided in Subsection (4)(b):
(i) only one on-premise beer retailer license is required for each building or resort
facility owned or leased by the same person; and
(ii) a separate license is not required for each retail beer dispensing location in the
same building or on the same resort premises owned or operated by the same person.
(b) (i) Subsection (4)(a) applies only if each retail beer dispensing location in the
building or resort facility operates in the same manner.
(ii) If each retail beer dispensing location does not operate in the same manner:
(A) one on-premise beer retailer license designated as a tavern is required for the
locations in the same building or on the same resort premises that operate as a tavern; and
(B) one on-premise beer retailer license is required for the locations in the same
building or on the same resort premises that do not operate as a tavern.
Section 7. Section 
32B-6-803
 is amended to read:
32B-6-803.
Commission's power to issue reception center license.
(1) Before a person may store, sell, offer for sale, or furnish an alcoholic product on its
premises as a reception center, the person shall first obtain a reception center license from the
commission in accordance with this part.
(2) The commission may issue a reception center license to establish reception center
licensed premises at places and in numbers the commission considers proper for the storage,
sale, offer for sale, furnishing, and consumption of an alcoholic product on premises operated
as a reception center.
(3) Subject to Section 
32B-1-201
, the commission may not issue a total number of
reception center licenses that at any time exceeds the number determined by dividing the
population of the state by [
56,313
] 
251,693
.
(4) The commission may not issue a reception center license for premises that do not
meet the proximity requirements of Section 
32B-1-202
.
Section 8. Section 
32B-8a-202
 is amended to read:
32B-8a-202.
Effect of transfer of ownership of business entity.
(1) (a) When the ownership of 51% or more of the shares of stock of a corporation is
acquired by or transferred to one or more persons who did not hold the ownership of 51% of
those shares of stock on the date a retail license is issued to the corporation, the corporation
shall comply with this chapter to transfer the retail license to the corporation as if the
corporation is newly constituted.
(b) When there is a new general partner or when the ownership of 51% or more of the
capital or profits of a limited partnership is acquired by or transferred to one or more persons as
general or limited partners and who did not hold ownership of 51% or more of the capital or
profits of the limited partnership on the date a retail license is issued to the limited partnership,
the limited partnership shall comply with this chapter to transfer the retail license to the limited
partnership as if the limited partnership is newly constituted.
(c) When the ownership of 51% or more of the interests in a limited liability company
is acquired by or transferred to one or more persons as members who did not hold ownership of
51% or more of the interests in the limited liability company on the date a retail license is
issued to the limited liability company, the limited liability company shall comply with this
chapter to transfer the retail license to the limited liability company as if the limited liability
company is newly constituted.
[
(2) A business entity may not transfer a retail license under this section unless, before
the filing of the transfer application with the department, the business entity initiating the
transfer complies with Section 
32B-8a-301
.
]
[
(3)
] 
(2)
 If a business entity fails to comply with this section within 30 days of the day
on which the event described in Subsection (1) occurs, the business entity's retail license is
automatically forfeited.
Section 9. Section 
32B-8a-203
 is amended to read:
32B-8a-203.
Operational requirements for transferee.
(1) 
(a)
 A transferee shall begin operations of the retail license within 30 days from the
day on which a transfer is approved by the commission, except that
:
(i)
 the department may grant an extension of this time period not to exceed 30 days[
.
]
;
and
(ii) after the extension is authorized by the department under Subsection (1)(a)(i), the
commission may grant one or more additional extensions not to exceed, in the aggregate, seven
months from the day on which the commission approves the transfer, if the transferee can
demonstrate to the commission that the transferee:
(A) cannot begin operations because the transferee is improving the licensed premises;
(B) has obtained a building permit for the improvements described in Subsection
(1)(a)(ii)(A); and
(C) is working expeditiously to complete the improvements to the licensed premises.
(b) A transferee is considered to have begun operations of the retail license if the
transferee:
(i) has a licensed premises that is open to the public;
(ii) sells, offers for sale, or furnishes alcoholic products to a patron on the licensed
premises described in Subsection (1)(b)(i); and
(iii) has a valid business license.
(2) If a transferee fails to begin operations of the retail license within the time period
required by Subsection (1), [
the retail license is forfeited and the commission may issue the
retail license to another person
] 
the following are automatically forfeited effective immediately:
(a) the retail license; and
(b) the retail license fee
.
(3) A transferee shall begin operations of the retail license at the location to which the
transfer applies before the transferee may seek a transfer of the retail license to a different
location.
(4) 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
.
Section 10. Section 
32B-8a-302
 is amended to read:
32B-8a-302.
Application -- Approval process.
(1) To obtain the transfer of a retail license from a retail licensee, the transferee shall
file a transfer application with the department that includes:
(a) an application in the form provided by the department;
(b) a statement as to whether the consideration, if any, to be paid to the transferor
includes payment for [
any or all of the following: (i) inventory; (ii) fixtures; and (iii)
] transfer
of the retail license;
(c) [
a copy of the notice of intended transfer
] 
a statement executed under penalty of
perjury that the consideration as set forth in the escrow agreement required by Section
32B-8a-401
 is deposited with the escrow holder
; and
(d) (i) an application fee of $300; and
(ii) a transfer fee determined in accordance with Section 
32B-8a-303
.
(2) If the intended transfer of a retail license involves consideration, at least 10 days
before the commission may approve the transfer, the department shall post a notice of the
intended transfer on the Public Notice Website created in Section 
63F-1-701
 that states the
following:
(a) the name of the transferor;
(b) the name and address of the business currently associated with the retail license;
(c) instructions for filing a claim with the escrow holder; and
(d) the projected date that the commission may consider the transfer application.
[
(2)
] 
(3)
 (a) (i) Before the commission may approve the transfer of a retail license, the
department shall conduct an investigation and may hold public hearings to gather information
and make recommendations to the commission as to whether the transfer of the retail license
should be approved.
(ii) The department shall forward the information and recommendations described in
this Subsection [
(2)
] 
(3)
(a) to the commission to aid in the commission's determination.
(b) Before approving a transfer, the commission shall:
(i) determine that the transferee filed a complete application;
(ii) determine that the transferee is eligible to hold the type of retail license that is to be
transferred at the premises to which the retail license would be transferred;
(iii) determine that the transferee is not delinquent in the payment of an amount
described in Subsection 
32B-8a-201
(3);
(iv) determine that the transferee is not disqualified under Section 
32B-1-304
;
(v) consider the locality within which the proposed licensed premises is located,
including the factors listed in Section 
32B-5-203
 for the issuance of a retail license;
(vi) consider the transferee's ability to manage and operate the retail license to be
transferred, including the factors listed in Section 
32B-5-203
 for the issuance of a retail license;
(vii) consider the nature or type of retail licensee operation of the transferee, including
the factors listed in Section 
32B-5-203
 for the issuance of a retail license;
(viii) if the transfer involves consideration, determine that the transferee and transferor
have complied with Part 4, Protection of Creditors; and
(ix) consider any other factor the commission considers necessary.
[
(3)
] 
(4)
 (a) Except as provided in Subsection [
(3)
] 
(4)
(b), the commission may not
approve the transfer of a retail license to premises that do not meet the proximity requirements
of Section 
32B-1-202
.
(b) If after a transfer of a retail license the transferee operates the same type of retail
license at the same location as did the transferor, the commission may waive or vary the
proximity requirements of Subsection 
32B-1-202
(2) in considering whether to approve the
transfer under the same circumstances that the commission may waive or vary the proximity
requirements in accordance with Subsection 
32B-1-202
(4) when considering whether to issue a
retail license.
Section 11. Section 
32B-8a-401
 is amended to read:
32B-8a-401.
Notification of creditors -- Escrow -- Priority of payments.
(1) Before the filing of a transfer application with the department, if the intended
transfer of a retail license involves consideration:
(a) the transferor shall provide the transferee a list of creditors who have a claim
against the transferor;
(b) the transferee shall [
provide a copy of the notice of intended transfer to
] 
notify
 each
creditor on the list provided under Subsection (1)(a) 
of the intended transfer
;
(c) the transferor and the transferee shall establish an escrow with a person who is not a
party to the transfer to act as escrow holder;
(d) the transferee shall deposit with the escrow holder the full amount of the
consideration; and
(e) the transferor and transferee shall enter into an agreement that:
(i) the consideration is deposited with the escrow holder;
(ii) requires the escrow holder to distribute the consideration within a reasonable time
after the completion of the transfer of the retail license; and
(iii) directs the escrow holder to distribute the consideration in accordance with
Subsection (2).
(2) Subject to the other requirements of this section, if a creditor with a claim against
the transferor files the claim with the escrow holder before the escrow holder is notified by the
department that the transfer is approved, the escrow holder shall distribute the consideration in
the following order:
(a) to the payment of:
(i) the United States for a claim based on income or withholding taxes; and
(ii) a claim based on a tax other than specified in Subsection 
32B-8a-201
(3);
(b) to the payment of a claim for wages, salaries, or fringe benefits earned or accrued
by an employee of the transferor before the transfer or opening of the escrow for the transfer of
the retail license;
(c) to the payment of a claim of a secured creditor to the extent of the proceeds that
arise from the sale of the security;
(d) to the payment of a claim on a mechanics lien;
(e) to the payment of:
(i) escrow fees;
(ii) a claim for prevailing brokerage fees for services rendered; and
(iii) a claim for reasonable attorney fees for services rendered;
(f) to the payment of claims:
(i) of a landlord, to the extent of proceeds on past due rent or lease requirements;
(ii) for goods sold and delivered to the retail licensee for resale at the transferor's
licensed premises; and
(iii) for services rendered, performed, or supplied in connection with the operation of
the transferor's licensed business;
(g) to the payment of other types of claims that are reduced to court-ordered judgments,
including a claim for court-ordered support of a minor child; and
(h) to the payment of all other claims.
Section 12. 
Repealer.
This bill repeals:
Section 
32B-8a-301
,
Notice of intended transfer.
Section 
32B-8a-403
,
Statement by transferee.
Section 13. 
Effective date.
 (1) Amendments to the following sections take effect if approved by two-thirds of all
the members elected to each house, upon approval by the governor, or the day following the
constitutional time limit of Utah Constitution, Article VII, Section 8, without the governor's
signature, or in the case of a veto, the date of veto override:
(a) Section 
32B-6-203
;
(b) Section 
32B-6-303
;
(c) Section 
32B-6-703
; and
(d) Section 
32B-6-803
.
(2) Except for the sections listed in Subsection (1), this bill takes effect on May 10,
2016.