Bond related to package agency

(1) (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 (b) No part of a bond posted by a package agent under this section may be withdrawn: (i) during the period the package agency is in effect; or (ii) while a revocation of the package agency is pending against the package agent.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.