1. (1)

   1. (a) A retail licensee shall post a cash bond or surety bond:

      1. (i) in the amount specified in the relevant chapter or part for the type of retail license for which the person is applying; and
      2. (ii) payable to the department.
   2. (b) A retail licensee shall procure and maintain the bond required under this section for as long as the retail licensee continues to operate as a retail licensee.

2. (2) A bond required under this section shall be:

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

3. (3)

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

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 (b) No part of a bond posted by a retail licensee under this section may be withdrawn:

      1. (i) during the period the retail license is in effect; or
      2. (ii) while a revocation proceeding is pending against the retail licensee.

4. (4)

   1. (a) A bond posted under this section by a retail licensee may be forfeited if the retail license is revoked.
   2. (b) Notwithstanding Subsection (4)(a), the department may make a claim against a bond posted by a retail licensee for money owed the department under this title without the commission first revoking the retail license.

Amended by Chapter 219, 2020 General Session