Utah Admin. Code R82-2-308 - Consignment Inventory Package Agencies
(1) Authority. This
rule is made pursuant to Sections 32B-2-202 and 32B-2-605, which authorize the
Commission to make rules governing package agencies.
(2) Purpose. This rule provides the
procedures for consignment sales of liquor to a type 2 or type 3 package agency
at the discretion of the Department.
(3) Application.
(a) Consignment Inventory.
(i) The Department shall:
(A) establish the initial amount of
consignment inventory furnished to a package agency;
(B) post the package agency's consignment
inventory amount to the Department's accounting system as "Consignment
Inventory Account";
(C) make any
adjustment to the consignment inventory amount through a transfer, shipment, or
payment of money; and
(D) include a
copy of the transfer or adjusting shipment or evidence of payment in the
package agency's file.
(ii)
(A)
The Department may adjust a package agency's consignment inventory amount from
time to time based on the package agency's monthly average sales.
(B) In the event the package agency's
12-month average sales are lower than the package agency's current consignment
amount, the Department may lower the consignment amount.
(C) If the consignment amount is reduced, the
package agency must pay for the difference through cash payment or returned
inventory to the Department.
(iii)
(A)
The package agency's contract with the Department shall state the package
agency's consignment inventory amount.
(B) Any adjustment to the package agency's
consignment inventory amount shall be made through a contract amendment or a
new contract.
(b) Payments.
(i) A package agency that receives shipments
or transfers of liquor shall have an Automated Clearing House (ACH) payment
system set up with the Department.
(ii) The Department shall email a package
agency a statement that shows the package agency's unpaid debts and applied
credits before the end of each week.
(iii) The weekly statement will reflect:
(A) 30 days from the order date to pay for
ordered liquor inventory;
(B)
payments received against the oldest outstanding invoices first; and
(C) payments received over previous statement
balances credited chronologically against ordered liquor inventory due after
previous statements.
(iv)
The package agent is responsible for reviewing the statement and contacting the
Department with any discrepancies before the payment due date.
(v)
(A) A
package agent may, in advance of the Department drawing payments via Automated
Clearing House (ACH), remit payment for the statement total to the Department
on balances due from outstanding invoices that have not received enough credit
card payments or other payments to cover those outstanding balances.
(B) If no other payment has been received by
the due date, payment will be automatically drawn through the Automated
Clearing House (ACH) process on the due date unless prior arrangements have
been made between the package agent and the Department.
(vi)
(A)
The Department shall consider insufficient funds, returned checks, and unpaid
balances from a previous statement past due.
(B) The Department may assess the legal rate
of interest on the amount owed by a package agency and the package agency may
be referred to the Commission for possible termination of the package agency
contract and closure.
(vii)
(A)
The Department and the package agency shall resolve any delivery discrepancies
using the LQ9 form or another form provided by the Department.
(B) The Department shall issue a debit or
credit after proper completion and submission of the LQ9 or other form to the
Department.
(C) The Package agency
shall pay in accordance with the package agency's statement by the due date
regardless of whether any discrepancies have been resolved.
(c) Transfers.
(i) The Department shall adjust transfers, up
or down, to the package agency's payment due the Department.
(ii) Transfers to the package agency will add
to the amount owed to the Department.
(iii) Transfers out will subtract from the
amount owed to the Department on the next check due to the
Department.
(d) Credit
and Debit Card Credits.
(i) Credit for credit
and debit cards processed at the package agency will be posted to the package
agency's statement.
(ii) The
package agent is responsible for sending the package agency's settlement report
and individual receipts to the Department to receive credit.
(e) Audits.
(i) The Department shall audit the package
agency at least once each fiscal year, but may conduct additional audits if
deemed necessary.
(ii) The package
agency is subject to a Department audit at any time.
Notes
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