§ 32B-5-204. Bond for retail license.

(1)

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

(i) in the amount specified in the relevant part under Chapter 6, Specific Retail License Act, for the type of retail license for which the person is applying; and

(ii) payable to the department.

(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) A bond required under this section shall be:

(a) in a form approved by the attorney general; and

(b) conditioned upon the retail licensee's faithful compliance with this title and the rules of the commission.

(3)

(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.

(b) No part of a bond posted by a retail licensee under this section may be withdrawn:

(i) during the period the retail license is in effect; or

(ii) while a revocation proceeding is pending against the retail licensee.

(4)

(a) A bond posted under this section by a retail licensee may be forfeited if the retail license is revoked.

(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.

Enacted by Chapter 276, 2010 General Session