32B-2-604. Bond related to package agency.

352 words·~2 min read·/ut/title-32b/chapter-2/32b-2-604

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/5/2021

(a)A package agent who has a consignment liquor inventory owned by the state shall post a:

(i)consignment surety bond:

(A)payable to the department; and

(B)in the amount of the consignment inventory; and

(ii)cash or surety bond:

(A)payable to the department; and

(B)in the penal amount of at least $1,000, as the department determines.

(b)A package agent who has a consignment liquor inventory shall ensure that a consignment surety bond is conditioned upon a package agent's return of the unsold consignment liquor inventory at the termination of a package agency agreement.

(2)A package agent that owns the package agency's liquor inventory shall post a cash bond or surety bond:

(a)in the penal amount of at least $1,000, as the department determines; and

(b)payable to the department.

(3)A package agent shall procure and maintain the bond required under this section for as long as the package agent continues to operate as a package agent.

(4)A bond required under this section shall be:

(a)in a form approved by the attorney general; and

(b)conditioned upon the package agent's faithful compliance with this title, the rules of the commission, and the package agency agreement.

(a)If a surety bond posted by a package agency under this section is canceled due to the package agent's or package agency's negligence, the department may assess a $300 reinstatement fee.

(b)No part of a bond posted by a package agent under this section may be withdrawn:

(i)during the period the package agency is in effect; or

(ii)while a revocation of the package agency is pending against the package agent.

(a)A bond posted under this section by a package agent may be forfeited if the package agency is revoked.

(b)Notwithstanding Subsection (6)(a) , the department may make a claim against a bond posted by a package agent for money owed the department under this title without the commission first revoking the package agency.

Amended by Chapter 291 , 2021 General Session