32B-2-605 (Effective 07/01/11) - Operational requirements for package agency.
32B-2-605 (Effective 07/01/11). Operational requirements for package agency.
(1) (a) A person may not operate a package agency until a package agency agreement isentered into by the package agent and the department.
(b) A package agency agreement shall state the conditions of operation by which thepackage agent and the department are bound.
(c) (i) If a package agent or staff of the package agent violates this title, rules under thistitle, or the package agency agreement, the department may take any action against the packageagent that is allowed by the package agency agreement.
(ii) An action against a package agent is governed solely by its package agencyagreement and may include suspension or revocation of the package agency.
(iii) Notwithstanding that this part refers to "package agency" or "package agent," staff ofthe package agency or package agent is subject to the same requirement or prohibition.
(2) (a) A package agency shall be operated by an individual who is either:
(i) the package agent; or
(ii) an individual designated by the package agent.
(b) An individual who is a designee under this Subsection (2) shall be:
(i) an employee of the package agent; and
(ii) responsible for the operation of the package agency.
(c) The conduct of the designee is attributable to the package agent.
(d) A package agent shall submit the name of the person operating the package agency tothe department for the department's approval.
(e) A package agent shall state the name and title of a designee on the application for apackage agency.
(f) A package agent shall:
(i) inform the department of a proposed change in the individual designated to operate apackage agency; and
(ii) receive prior approval from the department before implementing the changedescribed in this Subsection (2)(f).
(g) Failure to comply with the requirements of this Subsection (2) may result in theimmediate termination of a package agency agreement.
(3) A package agent shall display in a prominent place in the package agency:
(a) the record issued by the commission that designates the package agency; and
(b) a sign in large letters stating: "Warning: Driving under the influence of alcohol ordrugs is a serious crime that is prosecuted aggressively in Utah."
(4) A package agency may not display liquor or a price list in a window or showcase thatis visible to passersby.
(5) (a) A package agency may not purchase liquor from a person except from thedepartment.
(b) At the discretion of the department, liquor may be provided by the department to apackage agency for sale on consignment.
(6) A package agency may not store, sell, offer for sale, or furnish liquor in a place otherthan as designated in the package agent's application, unless the package agent first applies forand receives approval from the department for a change of location within the package agencypremises.
(7) A package agency may not sell, offer for sale, or furnish liquor except at a price fixed
by the commission.
(8) A package agency may not sell, offer for sale, or furnish liquor to:
(a) a minor;
(b) a person actually, apparently, or obviously intoxicated;
(c) a known interdicted person;
(d) a known habitual drunkard.
(9) (a) A package agency may not employ a minor to handle liquor.
(b) (i) Staff of a package agency may not:
(A) consume an alcoholic product on the premises of a package agency; or
(B) allow any person to consume an alcoholic product on the premises of a packageagency.
(ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
(10) (a) A package agency may not close or cease operation for a period longer than 72hours, unless:
(i) the package agency notifies the department in writing at least seven days before theclosing; and
(ii) the closure or cessation of operation is first approved by the department.
(b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a packageagency shall immediately notify the department by telephone.
(c) (i) The department may authorize a closure or cessation of operation for a period notto exceed 60 days.
(ii) The department may extend the initial period an additional 30 days upon writtenrequest of the package agency and upon a showing of good cause.
(iii) A closure or cessation of operation may not exceed a total of 90 days withoutcommission approval.
(d) The notice required by Subsection (10)(a) shall include:
(i) the dates of closure or cessation of operation;
(ii) the reason for the closure or cessation of operation; and
(iii) the date on which the package agency will reopen or resume operation.
(e) Failure of a package agency to provide notice and to obtain department authorizationbefore closure or cessation of operation results in an automatic termination of the package agencyagreement effective immediately.
(f) Failure of a package agency to reopen or resume operation by the approved dateresults in an automatic termination of the package agency agreement effective on that date.
(11) A package agency may not transfer its operations from one location to anotherlocation without prior written approval of the commission.
(12) (a) A person, having been issued a package agency, may not sell, transfer, assign,exchange, barter, give, or attempt in any way to dispose of the package agency to another person,whether for monetary gain or not.
(b) A package agency has no monetary value for any type of disposition.
(13) (a) Subject to the other provisions of this Subsection (13):
(i) sale or delivery of liquor may not be made on or from the premises of a packageagency, and a package agency may not be kept open for the sale of liquor:
(A) on Sunday; or
(B) on a state or federal legal holiday.
(ii) Sale or delivery of liquor may be made on or from the premises of a package agency,and a package agency may be open for the sale of liquor, only on a day and during hours that thecommission directs by rule or order.
(b) Subsection (13)(a) governs unless:
(i) the package agency is located at a winery licensed in accordance with Chapter 11,Manufacturing and Related Licenses Act;
(ii) the winery licensed in accordance with Chapter 11, Manufacturing and RelatedLicenses Act, holds:
(A) a full-service restaurant license; or
(B) a limited-service restaurant license;
(iii) the restaurant is located at the winery;
(iv) the restaurant sells wines produced at the winery;
(v) the winery:
(A) owns the restaurant; or
(B) operates the restaurant;
(vi) the package agency only sells wine produced at the winery; and
(vii) the package agency's days and hours of sale are the same as the days and hours ofsale at the restaurant.
(c) (i) Subsection (13)(a) does not apply to a package agency held by a resort licensee ifthe package agent that holds the package agency to sell liquor at the resort does not sell liquor ina manner similar to a state store.
(ii) The commission may by rule define what constitutes a package agency that sellsliquor "in a manner similar to a state store."
(14) (a) Except to the extent authorized by commission rule, a minor may not beadmitted into, or be on the premises of a package agency unless accompanied by a person who is:
(i) 21 years of age or older; and
(ii) the minor's parent, legal guardian, or spouse.
(b) A package agent or staff of a package agency that has reason to believe that a personwho is on the premises of a package agency is under the age of 21 and is not accompanied by aperson described in Subsection (14)(a) may:
(i) ask the suspected minor for proof of age;
(ii) ask the person who accompanies the suspected minor for proof of age; and
(iii) ask the suspected minor or the person who accompanies the suspected minor forproof of parental, guardianship, or spousal relationship.
(c) A package agent or staff of a package agency shall refuse to sell liquor to thesuspected minor and to the person who accompanies the suspected minor into the packageagency if the minor or person fails to provide any information specified in Subsection (14)(b).
(d) A package agent or staff of a package agency shall require the suspected minor andthe person who accompanies the suspected minor into the package agency to immediately leavethe premises of the package agency if the minor or person fails to provide information specifiedin Subsection (14)(b).
(15) (a) A package agency may not sell, offer for sale, or furnish liquor except in a sealedpackage.
(b) A person may not open a sealed package on the premises of a package agency.
(16) The department may pay or otherwise remunerate a package agent on any basis,
including sales or volume of business done by the package agency.
(17) The commission may prescribe by policy or rule general operational requirements ofa package agency that are consistent with this title and relate to:
(a) physical facilities;
(b) conditions of operation;
(c) hours of operation;
(d) inventory levels;
(e) payment schedules;
(f) methods of payment;
(g) premises security; and
(h) any other matter considered appropriate by the commission.
Enacted by Chapter 276, 2010 General Session