32B-1-208. Percentage lease agreements.
(1) As used in this section: "Percentage lease agreement" means a lease agreement in which the lessee: is a retail licensee; and pays the lessor: a base rent; and percentage rent. "Percentage rent" means a percentage: agreed upon between a lessor and lessee; and of the total sales revenue that: exceed a fixed dollar amount of sales revenue; and the lessee earns while doing business on the rental premises.
(2) The parties to a percentage lease agreement shall submit a copy of the percentage lease agreement to the department. If there is a material change to the percentage lease agreement submitted to the department under Subsection, the parties to the percentage lease agreement shall promptly submit a copy of the changed percentage lease agreement to the department. (2)(a)
(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, establishing: Title 63G, Chapter 3, Utah Administrative Rulemaking Act the maximum percentage of revenue from alcohol sales a percentage lease agreement may require; and the procedure for submitting a percentage lease agreement under Subsection. (2)
(5) The provisions of this section do not apply to a percentage lease agreement in which the lessee is an airport lounge licensee. 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.