DELTA, Utah — The date June 21, 2004, is still displayed on the wall above the counter at what had been LeeAnne Maxfield’s liquor store.
That was the date a new customer had to be born by to walk in and purchase a bottle of wine, vodka, gin or whiskey. For that matter, June 21 — the most recent one — was the last day old customers could buy bottles in Delta or anywhere in Millard County.
That day, Maxfield closed her store in a dispute with the Utah Department of Alcoholic Beverage Services, or DABS. About a month earlier, the liquor store her son operated in Fillmore, the county seat, closed, too.
“My children grew up here,” said Maxfield, standing inside the empty store she operated for 30 years. “It’s been part of their lives.”
Further south, the liquor store in Milford also closed with no one wanting to take it over. DABS says it has new contractors to take over the stores in the tourist towns of Kanab, Torrey and some other places, but those new proprietors aren’t operating yet, meaning those communities have no supply of liquor or wine this Independence Day weekend.
In all, FOX 13 News estimates about a dozen rural liquor stores are currently shut down.
STIFF DRINK
The stores are closed after DABS changed the terms under which the stores operated.
While DABS operates the large wine or liquor stores in Utah’s urban areas, stores selling booze in rural parts of the state are often called “package agencies.” Locals like Maxfield and her son – he took over the Fillmore store in 2015 — operate the package agencies in an agreement with DABS.
In 2021, Maxfield and a group of package agencies sued the state. The plaintiffs allege Utah misclassified the package agents as independent contractors rather than state employees, potentially costing each package agent tens of thousands of dollars in lost wages.
Utah has denied those claims. The lawsuit is pending.
Then in January of this year, Maxfield and the other package agents wanting to renew their contracts were told there would be new terms.
“Several were very concerning,” Maxfield told FOX 13 News.
One of the most concerning concerned fees on credit and debit cards.
“Those merchant fees would now be passed on to me,” Maxfield said.
She says that’s about $24,000 a year.
“To put that in perspective,” Maxfield said, “last year, my take home pay after taxes and expenses was $30,000.”
“The other thing is they told me I don’t have to take credit cards if I don’t’ want to,” Maxfield said. “’Just don’t take cards.’ But that creates its own set of problems.”
Many customers, including the tourists who come in, don’t carry cash, Maxfield noted. She also didn’t want that much currency sitting around her store as a target for robbers.
Maxfield is not allowed to raise prices beyond what DABS sets. Nor, she said, would DABS negotiate with her to find other solutions that would allow her to earn a profit.
IN A UNIVERSE
Erika Larsen, the attorney representing Maxfield and the other plaintiffs in the employment classification lawsuit, told FOX 13 she believes the lawsuit and the new package agency terms are related.
“Our contention is it is a direct and clear retaliation,” Larsen said.
Larsen said package agencies had previously been required to use the state to process credit and debit cards, and that had also been evidence in the lawsuit of how the package agencies were treated like employees.
But rather than take away the card processing and find another way for the package agencies to stay in business, Larsen said, DABS seems to want to change its relationship with the package agencies to aid the state’s defense in court.
“Because this lawsuit has been filed, [DABS administrators] have been unwilling to work with any of the …package agents on this,” Larsen said.
DABS declined an interview request. A spokeswoman said changes to credit and debit processing will give “autonomy” to the merchants.
As for the stores in Fillmore, Delta and Milford no one wants to operate, DABS said in a statement:
“The DABS is meeting with local economic development and other officials in the market areas where package agencies are no longer located. The department seeks business-minded individuals interested in this unique opportunity."
A COMMUNITY RECIPE
The standoff has spilled onto Amanda Standworth, owner of Curley’s Lounge. It’s down the street from the closed liquor store in Delta.
Utah bars and restaurants are required to buy their alcohol from the state. Now, Stanworth has to drive 50 miles to Nephi to load up on booze.
“I know it’s going to cost me at least $20 just for gas a week to go over there,” Stanworth said.
“Plus,” she added, “I have to pay for somebody else to come and work for me while I go over.”
Maxfield said losing her community is the hardest part. She knew her customers.
“A lot of people,” Maxfield said, “I could actually have their items sitting on the counter by the time they got in the door.”
For customers with drinking problems, she tried to help them, she said. She worries some customers who live nearby are going to drive drunk to a neighboring county to buy alcohol.
“Kids aren’t going to try to buy from me because I’m going to call your mom before I call the sheriff,” she added.
Stanworth is not allowed to sell bottles or to-go drinks from Curley’s Lounge. So, she had to turn away a lady the other day – someone she knew to be a faithful member of the Church of Jesus Christ of Latter-day Saints.
“She said,” Stanworth recalled, “‘I just need a cup of white wine to cook my chicken dinner for tonight.’”
Complete statement from DABS spokeswoman Michelle Schmitt:
"The Department of Alcoholic Beverage Services and the ABS Commission recently completed the application and selection process for package agency contracts. Package agencies are retail liquor outlets that are managed by private operators who are contracted by the state of Utah to run the business. Each contract is signed on a three-year basis.
Contract Change
Earlier this year, the DABS informed existing package agents that the new contract period will begin with changes to the agreement. Previously, the DABS required PAs to use point of sale (POS) systems that were assigned by the department. Now, PAs have autonomy over this critical piece of their business by researching and choosing their POS systems.
New and Closing Package Agencies
This year, package agency locations in Utah are expanding from 35 to a total of 38 stores. New locations added are in Veyo, St. George, and Green River. There are three locations that are currently moving through the application and contract approval process and will be open in the coming weeks; those include Kanab, Helper, and Kamas. There are currently four locations where the DABS is seeking interest for new package agency operators; those include Castle Dale, Milford, Delta, and Fillmore. Castle Dale has been without a PA for nearly two years, a Milford operator was awarded a contract this year but recently opted not to proceed with the opportunity, and Delta and Fillmore have been operating under a single manager for several years who has chosen not to pursue a new PA contract.
The DABS is meeting with local economic development and other officials in the market areas where package agencies are no longer located. The department seeks business-minded individuals interested in this unique opportunity. More information about package agencies and how to apply can be found at abs.utah.gov/package-agencies."