Section 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.Utah Admin. Code R82-2-308
Adopted by Utah State Bulletin Number 2020-05, effective 2/25/2020Amended by Utah State Bulletin Number 2021-24, effective 12/1/2021Amended by Utah State Bulletin Number 2022-24, effective 12/1/2022Amended by Utah State Bulletin Number 2024-01, effective 12/22/2023Amended by Utah State Bulletin Number 2024-23, effective 11/22/2024