Utah Admin. Code R82-1-103 - General Provisions
(1) Authority. This
rule is made pursuant to Section 32B-2-202, which authorizes the Commission to
act as the general policymaking body regarding alcoholic product in the state
and to adopt rules accordingly.
(2)
Purpose. The purpose of this rule is to provide administrative guidance to the
Department and members of the public.
(3) Definitions. As used in this rule,
"cash-only" means:
(a) cash;
(b) certified check;
(c) bank draft;
(d) cashier's check; or
(e) United States Post Office money
order.
(4) The Department
may assess the legal rate of interest pursuant to Title 15, Contracts and
Obligations in General, for any debt or obligation owed to the Department by a
licensee, permittee, package agent, or any other person.
(5) The Department shall assess a $20 charge
for any dishonored check payable to the Department if returned for the
following reasons:
(a) insufficient
funds;
(b) refer to maker;
or
(c) account
closed.
(6)
(a) Receipt of a check payable to the
Department that is returned by the bank for any of the reasons listed in
Subsection (5) may result in the immediate suspension of the license, permit,
or operation of the package agency of the person tendering the check until
legal tender of the United States of America, certified check, bank draft,
cashier's check, or United States post office money order plus the $20 charge
described in Subsection (5) is received by the Department.
(b) Failure to make good the returned check
and pay the $20 charge within 30 days after the license, permit, or operation
of the package agency is suspended, is grounds for revocation of the license or
permit, or termination of the package agency contract, and the forfeiture of
the licensee's, permittee's, or package agent's bond.
(7)
(a) In
addition to the remedies listed in Subsection (6), the Department may require
that the licensee, permittee, or package agent transact business with the
Department on a cash-only basis.
(b) The determination of when to put a
licensee, permittee, or package agency operator on cash-only basis and the
length of the cash-only restriction is at the discretion of the Department and
based on the following factors:
(i) the dollar
amount of the returned check;
(ii)
the number of returned checks;
(iii) the length of time the licensee,
permittee, or package agency operator has had a license, permit, or package
agency with the Department;
(iv)
the time necessary to collect the returned check; and
(v) any other circumstances.
(8) A returned check
received by the Department from or on behalf of an applicant for or holder of a
single event permit or temporary beer event permit may, at the discretion of
the Department, require that the person or entity that applied for or held the
permit be on cash-only basis for any future event requiring a permit under
Title 32B, Chapter 9, Event Permit Act.
(9) In addition to the remedies established
in this rule, the Department may pursue any legal remedies to effect collection
of any returned check.
(10) If a
manufacturer and the Department have agreed to allow the manufacturer to ship
an alcoholic beverage directly to a state store or package agency without being
received and stored by the Department in the Department's warehouse, the
manufacturer shall receive a credit equaling the case handling costs incurred
by the Department for the product that is not warehoused by the Department.
(11) Pursuant to Section
32B-2-202, this rule authorizes the director to make internal Department
policies in accordance with Section 32B-2-206 for Department duties, as
described in Section 32B-2-204, for listing and delisting products to include a
program to place orders for products not kept for sale by the
Department.
Notes
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