R82-2-305. Evaluation Guidelines of Package Agencies

(1) Authority. This rule is made pursuant to Section 32B-2-202, which authorizes the commission to make rules governing package agencies and the process to issue a new package agency. (2)(a) The commission, after considering information from the applicant for the package agency and the department, shall determine whether the package agency is classified and operated as a type 1, 2, 3, 4, or 5 package agency, as described in Section R82-2-301. (b)(i) After a package agency is classified and issued, a package agent or the department may request that the commission approve a change in the classification of the package agency. (ii) If, based on information provided by the package agent or the department, the commission determines that the package agency should be reclassified, the commission shall approve the request. (c) The commission may not establish a type 2 or 3 package agency within a one-mile radius of another type 2 or 3 package agency unless the package agent clearly demonstrates that it is in the best interest of the state to establish and maintain the package agency at that location. (d) The department shall report any significant issues with respect to the operations of a particular package agency to the commission. (e) The department may recommend to the commission closure of a package agency based on: (i) the package agent's payment delinquency over 30 calendar days; (ii) significant inventory shortages; or (iii) any other significant operational deficiency of the package agent.