Administrative Rules of the State of Montana

BEFORE THE DEPARTMENT OF REVENUE

OF THE STATE OF MONTANA

In the matter of the amendment of ARM 42.12.111, 42.12.502, 42.12.503, and 42.12.504 pertaining to the Elimination of Competitive Bid Application Processing Fees

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NOTICE OF PROPOSED AMENDMENT

NO PUBLIC HEARING CONTEMPLATED

TO: All Concerned Persons

1. The Department of Revenue (department) proposes to amend the above-stated rules.

2. The department will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, please advise the department of the nature of the accommodation needed, no later than 5 p.m. on July 30, 2021. Please contact Todd Olson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or [email protected].

3. GENERAL STATEMENT OF REASONABLE NECESSITY. The department proposes to amend the above-stated rules to remove competitive bid processing fees and related cross-references. The department has made enhancements to the competitive bid application process, including the processing of the electronic forms, which has resulted in increased program efficiency. Since the amount of competitive bid application processing time has diminished significantly, the department believes the processing fee is no longer necessary. In accordance with 2-4-302(1)(c), MCA, the elimination of the competitive bid processing fee will have an estimated annual fiscal impact of approximately $1,200, which is an average of the total processing fee revenue collected between 2018 and 2021, divided by the 45 applicants who paid the fee over that period.

4. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

42.12.111 PROCESSING FEES (1) through (3) remain the same.

~~(4) The processing fee for a competitive bid form is $100.~~

(5) and (6) remain the same but are renumbered (4) and (5).

AUTH: 16-1-303, 16-4-105, 16-4-204, MCA

IMP: 16-1-302, 16-1-303, 16-4-105, 16-4-201, 16-4-204, 16-4-303, 16-4-313, 16-4-414, 16-4-420, MCA

42.12.502 PUBLISHING OF ALCOHOLIC BEVERAGE LICENSE AVAILABILITY (1) and (2) remain the same.

(3) The department shall publish the availability of the license once a week for four consecutive weeks in the newspaper of general circulation in the quota area. The publication notice shall include:

(a) through (c) remain the same.

~~(d) the processing fee;~~

(e) and (f) remain the same but are renumbered (d) and (e).

(4) The department has the right to cancel or amend a competitive bidding process at any time. If a competitive bidding process is cancelled, the department shall ~~refund the form processing fee and~~ notice the availability of the license, if applicable, in a future publication.

AUTH: 16-1-303, 16-4-105, 16-4-201, 16-4-204, 16-4-420, MCA

IMP: 16-4-105, 16-4-201, 16-4-204, 16-4-420, 16-4-430, MCA

42.12.503 RETAIL ALCOHOLIC BEVERAGE LICENSE COMPETITIVE BID FORMS (1) through (3) remain the same.

(4) A bidder will be disqualified from the competitive bidding process if:

(a) remains the same.

~~(b) the processing fee is not received on or before the deadline;~~

~~(h)~~ (g) the irrevocable letter of credit fails to specify the license type and~~/or~~ quota area.

AUTH: 16-1-303, 16-4-105, 16-4-201, 16-4-204, 16-4-420, MCA

IMP: 16-4-105, 16-4-201, 16-4-204, 16-4-401, 16-4-420, 16-4-430, MCA

REASONABLE NECESSITY: In addition to the general statement of reasonable necessity, the department proposes to amend ARM 42.12.503(4)(g) to remove the and/or provision because the department requires both informational items and the current rule text conveys an incorrect option for an applicant.

42.12.504 DETERMINATION OF SUCCESSFUL COMPETITIVE BIDDER AND SUBMISSION OF COMPLETED APPLICATION (1) through (5) remain the same.

~~(6) Failure to submit an application for licensure may result in a monetary penalty of no more than five percent of the bidder's bid amount.~~

(7) through (9) remain the same but are renumbered (6) through (8).

~~(10)~~ (9) If the application for licensure is not approved or the license is forfeited pursuant to 16-4-430(7), MCA, the next highest bidder will be notified in writing. The next highest bidder will have two weeks to submit an irrevocable letter of credit for their bid amount if the original letter of credit was cancelled. The next highest bidder shall comply with the requirements of (5) through ~~(9)~~ (8) and 16-4-430(4), MCA.

AUTH: 16-1-303, 16-4-105, 16-4-201, 16-4-204, 16-4-420, MCA

IMP: 16-4-105, 16-4-201, 16-4-204, 16-4-420, 16-4-430, MCA

REASONABLE NECESSITY: In addition to the general statement of reasonable necessity, the department proposes to amend ARM 42.12.504 to remove the five percent bid amount penalty that could be imposed against a successful competitive bidder who fails to submit an application for licensure because unforeseen circumstances arise that prevent the successful competitive bidder from being able to move forward in the licensing process.

5. Concerned persons may submit their data, views, or arguments concerning the proposed action, in writing, to Todd Olson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or e-mail [email protected] and must be received no later than August 24, 2021.

6. If persons who are directly affected by the proposed action wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to the person named in #5 no later than 5:00 p.m., August 24, 2021.

7. If the agency receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register. The number of hearing requests necessary for the department to conduct a public hearing is 12, which is approximately 10 percent of the number of licenses and competitive bid applicants impacted by these rule changes.

8. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a different mailing preference is noted in the request. Such written request may be mailed or emailed to the contact person in #5.

9. An electronic copy of this notice is available through the Secretary of State's web site at sosmt.gov/arm/register.

10. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

11. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rules will not significantly and directly impact small businesses.

/s/ Todd Olson /s/ Brendan Beatty

Todd Olson Brendan Beatty

Rule Reviewer Director of Revenue

Certified to the Secretary of State July 13, 2021.