Title 32B Chapter 2 Section 604

Alcoholic Beverage Control Act
Alcoholic Beverage Control Administration Act
Section 604
Bond related to package agency.

            

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

            (1) (a) A package agent who has a consignment liquor inventory owned by the state shall post a consignment surety bond payable to the department in the amount of the consignment inventory.

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

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

            (i) in the penal amount fixed by the department, except that the penal amount shall be at least $1,000; and

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            (b) No part of a bond posted by a package agent under this section may be withdrawn: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


Amended by Chapter 307, 2011 General Session