Current through Register Vol. XLI, No. 50, December 13, 2024
Section 175-5-9 - Purchase Option and the Purchase Option Licensing Process for Active Retail Licensees operating a Class A retail license9.1. At least 60 days prior to the bidding process for July 1, 2010, and prior to July 1st for every ten year license period thereafter: 9.1.a. All active retail licensees will receive information from the Commissioner explaining the choice between the purchase option licensing process and the license bidding procedure; and9.1.b. All active retail licensees will receive information from the Commissioner explaining Class A retail licenses, Class B retail licenses, freestanding liquor retail outlets, mixed retail liquor outlets, the purchase option, the deferred payment financing option, eligibility, forms and other requirements.9.2. All active retail licensees must respond on the form provided by the Commissioner, in writing, and indicate their choice and intent to operate: (i) a Class A retail license, select the purchase option and select the deferred payment financing option; or (ii) a Class B retail license.9.2.a. All active retail licensees electing a Class A Retail license must be licensed and operate a freestanding liquor retail outlet either on July 1, 2010, or July 1st for every ten year license period thereafter, or within 90 days of July 1, 2010, or July 1st for every ten year license period thereafter.9.2.b. All active retail licensees electing a Class B retail license must be licensed and operate a mixed retail liquor outlet either on July 1, 2010, or July 1st for every ten year license period thereafter, or within 90 days of July 1, 2010, or July 1st for every ten year license period thereafter.9.3. An active retail licensee is limited to applying the purchase option to active retail licenses held and operated by the active retail licensee and to the lesser of: (i) four (4) Class A retail licenses held and operated by the active retail licensee; or (ii) the number of active retail licenses currently held and operated by the active retail licensee.9.4. Within 30 days prior to the bidding process an active retail licensee electing the purchase option shall either: 9.4.a. Agree to pay and pay in full to the Commissioner an amount equal to ten percent (10%) over and above the minimum bid amount, as determined by the Board, for each active retail license upon which the active retail licensee has elected the purchase option, or9.4.b. Agree to pay to the Commissioner an amount equal to ten percent (10%) over and above the minimum bid amount, as determined by the Board, for each active retail license upon which the active retail licensee has elected the purchase option, by paying to the Commissioner an amount equal to the down payment required by the deferred payment financing option (See section 10) for each active retail license upon which the active retail licensee has elected the purchase option.9.5. An active retail licensee electing the purchase option and the deferred payment financing option must make all payments and installment payments timely, subject to the requirements and penalties in section 10 of this rule.9.6. An active retail licensee electing the purchase option will receive notice that the purchase option was accepted for each active retail license upon which the active retail licensee elected the purchase option.9.7. An active retail licensee electing the purchase option must complete an application form provided by the Commissioner, meet all other licensure requirements in this rule; be in good standing with all branches of government and meet all requirements to operate a Class A retail license.9.8. Upon meeting the requirements and paying the annual retail license fee, an active retail licensee electing the purchase option will receive a license, subject to making any installment payments, completing renewal forms, continually meeting Class A retail license requirements and paying the annual retail license fee during the ten year license period beginning July 1, 2010, or July 1 for every ten year license period thereafter, and expiring on June 30, 2020, or on June 30 for every ten year license period thereafter.9.9. Failure of an active retail licensee, who elected the purchase option and indicated its intent to operate freestanding liquor retail outlets, to open and operate any of its retail outlets on July 1, 2010, or July 1 every ten year license period thereafter, or within 90 days of July 1, 2010, or July 1 for every ten year license period thereafter, shall be weighed as evidence that the licensee also falsified documentation to the Commissioner regarding the operation and licensure of a Class A retail license(s) and result in the immediate suspension of the license(s) and is grounds for revocation of all retail outlet licenses held by the licensee, and also shall result in the forfeiture of all moneys paid to the Commissioner, including any bond or other down payments, installment payments, payments in full or annual retail license fees as agreed to by the active retail licensee in the deferred payment financing agreement (See also section 31). 9.10. The purchase option is not available to any active retail licensee, applicant or subsequent licensee who is a successful bidder or purchaser of a retail license and who subsequently chooses to open and operate a Class A retail license or freestanding liquor retail outlet or who converts a Class B retail license to a Class A retail license.9.11. This rule and the code do not create any expectation or rights in any retail licensee that the purchase option will or will not be available for any subsequent ten year license period.