§ 32B-8d-103 — Commission's power to issue a sublicense.

(1) Before a person as a sublicensee may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product on sublicensed premises, the person shall first obtain a sublicense from the commission in accordance with:

(1)(a) this chapter;
(1)(b) Chapter 8, Resort License Act;
(1)(c) Chapter 8b, Hotel License Act; and
(1)(d) Chapter 8c, Arena License Act.
(2) (2)(a) The commission may issue to a person a sublicense to allow the storage, sale, offering for sale, furnishing, or consumption of an alcoholic product on the premises of the sublicense, if the person is:
(2)(a)(i) a principal licensee; or
(2)(a)(ii) a person seeking a principal license, contingent on the issuance of the principal license.
(2)(b) The commission may not:
(2)(b)(i) issue a sublicense that is separate from a principal license; or
(2)(b)(ii) issue a single sublicense that covers more than one outlet in or on the boundaries of the principal licensee.
(3) When determining the total number of licenses the commission has issued for each type of retail license, the commission may not include a sublicense as one of the retail licenses issued under the provisions applicable to that sublicense.
(4) If a principal licensee seeks to add a sublicense after the commission issues the person's principal license, the principal licensee shall file with the department:

(4)(a) a nonrefundable $300 application fee;
(4)(b) an initial license fee of $2,250, which the commission shall refund if the commission does not issue the proposed sublicense;
(4)(c) written consent of the local authority;
(4)(d) a copy of:
(4)(d)(i) the principal licensee's current business; and
(4)(d)(ii) the proposed sublicensee's current business license, if the relevant political subdivision determines that the proposed sublicensee's business license is separate from the principal licensee's business license;
(4)(e) evidence that the proposed sublicensed premises is entirely within the boundary of the principal license;
(4)(f) a description, floor plan, and boundary map of the proposed sublicensed premises designating:
(4)(f)(i) each location at which the principal licensee proposes that an alcoholic product be stored; and
(4)(f)(ii) each location from which the principal licensee proposes that an alcoholic product be sold, furnished, or consumed;
(4)(g) evidence that the principal licensee carries:
(4)(g)(i) public liability insurance in an amount and form satisfactory to the department; and
(4)(g)(ii) dramshop insurance coverage in the amount required by Section 32B-5-201 that covers the proposed sublicense;
(4)(h) a signed consent form stating that the principal licensee will permit any authorized representative of the commission or department, or any law enforcement officer, to have an unrestricted right to enter the proposed sublicensed premises;
(4)(i) if the principal licensee is an entity, proper verification evidencing that a person who signs the application is authorized to sign on behalf of the entity; and
(4)(j) any other information the commission or department may require.

Legislative History

Amended by Chapter 371, 2023 General Session