As used in this subchapter, the following definitions apply:

(1) "Adult" means a person 21 years of age or older.

(2) "Agency liquor store" means a liquor store operated by an agent.

(3) "Agent" means a person or entity that markets liquor on a commission basis under an agency agreement with the department and provides all the resources, including personnel and store premises, needed to market liquor under the agreement.

(4) "Average commission percentage" means the simple average of the commission percentage of agents with similar sales volumes.

(5) "Base year" means the first year of the three-year commission rate review period as it applies in 16-2-101, MCA. For example, the base year is 2010 for the commission rate review that will be conducted in 2013.

(6) "Commission percentage discount rate" means a specific percentage discount rate granted to an agent operating an agency liquor store. The percentage rate may be adjusted for the term of the franchise agreement.

(7) "Community boundary" means:

(a) in the case of an incorporated city or town, the city or town limits; and

(b) in other communities, the area identified by the United States Census Bureau as a community for census purposes.

(8) "Invoice date" means the date an agent receives their liquor order in the agency liquor store.

(9) "Minimum qualified petitioners" means the number of adults who reside in the community, which equals 5 percent of the community population as determined in the most recently available census estimate for the community or 20 adults who reside in the community if 5 percent of the community population is less than 20.

(10) "New agency liquor store" means an agency liquor store that begins operation in a community that has not had an agency liquor store in operation for one or more years or is eligible for an additional agency liquor store.

(11) "Public hearing" is a public meeting to solicit public comments and is not an administrative adjudication between opposing parties.

(12) "Required documents" means, but is not limited to:

(a) tax returns and schedules for the agency liquor store;

(b) if combined with other operations, a separate income or profit and loss statement with allocated percentages of the labor operation;

(c) a copy of one month's utility statement;

(d) copies of rental or lease contracts or agreements;

(e) copies of health insurance premium statements;

(f) copies of liability insurance premiums; and

(g) copies of quarterly federal forms 941.

(13) "Sales band" means a group of agents with similar sales volumes.

(14) "Sales volume" means an agent's purchases from the department at posted price for the applicable calendar or fiscal year.

(15) "Top 25 items" means the top 25 liquor items (SKUs) sold by agency liquor stores in the state of Montana, based on the highest quantity of cases sold in the previous calendar year.

(16) "Volume of sales discount" means a percentage discount received by an agent, based on the total fiscal year purchases at posted price from the previous fiscal year, based on invoice date.