Package agency: means a retail liquor location operated:
(a)
under an agreement with the department; and
(b)
by a person:
(i)
other than the state; and
(ii)
who is authorized by the commission in accordance with 6, to sell packaged liquor for consumption off the premises of the package agency. See Utah Code 32B-1-102
Package agent: means a person who holds a package agency. See Utah Code 32B-1-102
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(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.
(5)
(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No part of a bond posted by a package agent under this section may be withdrawn: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.
(6)
(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.
