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42.11.305    OPENING A NEW STATE AGENCY LIQUOR STORE

(1) The number of state agency liquor stores that may be located in a community will vary with the population in a community. The number of stores that may be located in a community may vary as prescribed in 16-2-109, MCA.

(2) A new state agency liquor store will be operated by an agent.

(3) The department will conduct a public hearing to open a new state agency store in a community when all of the following conditions are met:

(a) The department receives a petition signed by at least the minimum qualified petitioners to open a state agency store in the community. The petition must clearly state that its purpose is to have the department open a state agency liquor store in the community which will be operated by an agent under contract with the department. The petition must show the printed name, mailing address and signature of each person signing the petition.

(b) The department receives a letter from a person willing to submit a proposal or bid to operate a state agency store in the community. This person must control or expect to control a building in the community that could be used as the state agency store location.

(c) The number of state agency liquor stores currently operating in the community does not exceed the limit in 16-2-109, MCA.

(d) The nearest community with an operating state agency liquor store is more than 35 miles as measured from the nearest community boundaries along the shortest route on a paved road between the two communities unless the new store is to be located in a community eligible for more than one store pursuant to 16-2-109, MCA.

(e) The department has not solicited for an agent in the community within the previous three years.

(f) The petition identified in (3) (a) and the letter from a potential agent in (3) (b) must be received within six months of each other.

(4) When all of the conditions in (3) are met, the department will hold a public hearing in the community to receive comments from interested parties concerning the department's intention to advertise for proposals or bids for a liquor store agent. The procedures concerning the public hearing are:

(a) The notice will contain the following:

(i) the date, time and place in the community where the public hearing will be conducted; and

(ii) provide the name and address of the hearing officer appointed by the department to conduct the hearing.

(b) Notice of the public hearing will be advertised twice during a two-week period in the legal section of:

(i) the nearest daily newspaper in general circulation for the affected area; and

(ii) in the local community newspaper, if there is one.

(c) The hearing will be conducted no less than 14 days but no more than 20 days following the last publication of the notice in the newspapers.

(d) The hearing officer will preside over the hearing and collect the information presented by all persons. The hearing will be directed to the following:

(i) whether the department should proceed with its intention to advertise for proposals or bids for a liquor store agent for the community;

(ii) whether any limitations or restrictions on the location and operation of the agency should be considered; and

(iii) whether any other issues directly related to the operation of the proposed store in the community or its possible effects on the community should be considered in the determination of whether to proceed with its intention to advertise for proposals or bids for a liquor store agent for the community.

(e) Within one week following the public hearing, the hearing officer will submit a report to the department.   This report will provide the following:

(i) identify all of the issues raised at the hearing;

(ii) recommend whether proceeding with the advertisement for proposals or bids for a liquor store agent is in the best interest of the state, and the community; and

(iii) recommend whether any limitations or restrictions on the location and operation of the agency should be considered.

(f) One week following receipt of the hearing officer's report, the department will decide what action will be taken in response to the hearing officer's recommendations.

(5) Notice of the department's decision will be mailed to all parties who signed the petition and gave a mailing address or who attended the public hearing and gave a mailing address.

(6) If the decision is to proceed with the advertisement for request for proposals or invitation for bids for a liquor store agent, the process to select an agent will be conducted in accordance with ARM 42.11.310.

(7) If no proposals or bids are received in response to a request for proposals or invitation for bids, or none of the proposals or bids received meet the minimum requirements specified in the request for proposals or the invitation for bids, the department will make no further solicitation for an agent in the community for three years. If the conditions in (3) and (4) are met after the three-year period, the department will begin the process again. However, if the department determines that the petition required in (3) (a) was not generated in good faith, the department may waive the three-year limitation.

History: Sec. 16-1-303, MCA; IMP, Sec. 16-2-101 and 16-2-109, MCA; NEW, 1993 MAR p. 2418, Eff. 10/15/93; AMD, 1998 MAR p. 2498, Eff. 9/11/98.

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