1. (1)

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

      1. (i) consignment surety bond:

         1. (A) payable to the department; and
         2. (B) in the amount of the consignment inventory; and

      2. (ii) cash or surety bond:

         1. (A) payable to the department; and
         2. (B) in the penal amount of at least $1,000, as the department determines.
   2. (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. (2) A package agent that owns the package agency's liquor inventory shall post a cash bond or surety bond:

   1. (a) in the penal amount of at least $1,000, as the department determines; and
   2. (b) payable to the department.
3. (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. (4) A bond required under this section shall be:

   1. (a) in a form approved by the attorney general; and
   2. (b) conditioned upon the package agent's faithful compliance with this title, the rules of the commission, and the package agency agreement.

5. (5)

   1. (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.

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 (b) No part of a bond posted by a package agent under this section may be withdrawn:

      1. (i) during the period the package agency is in effect; or
      2. (ii) while a revocation of the package agency is pending against the package agent.

6. (6)

   1. (a) A bond posted under this section by a package agent may be forfeited if the package agency is revoked.
   2. (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