Idaho Admin. Code r. 15.10.01.011

Current through August 31, 2023
Section 15.10.01.011 - DISTRIBUTING STATIONS
01.Term of Agreement. Special Distributor Agreements are valid for a specified period as determined at the discretion of the Director. (3-25-22)
02.Transfer of Agreement. A Special Distributor Agreement is a personal privilege and is not considered property nor is it assignable or transferable. (3-25-22)
03.Agreement Renewal. If a Distributing Station's operation exceeds Division expectations, agreement renewals may be allowed. (3-25-22)
04.Agreement Evaluations. Periodic evaluation of the agreement, in accordance with the guidelines set in Subsection 011.06 of these rules, will be considered to insure reasonable, uniform and non-discriminatory criteria and procedures for selection and renewal of special Distributing Stations pursuant to Section 23-302, Idaho Code. These criteria are applicable to the replacement of an existing Distributing Station and to the establishment of a new Distributing Station. (3-25-22)
05.Acceptance of Applications. Applications for Distributing Stations are accepted only in response to public notices. Unsolicited applications may not be held on file pending future openings. (3-25-22)
06.Applicant Selection. The selection of the most qualified applicant for a Distributing Station will be made by the Director in accordance with Section 23-304, Idaho Code. The Director reserves the right to refuse to select any and all applicants. Applicant selection will be based on the following criteria: (3-25-22)
a. Public acceptability in accordance with Section 23-302, Idaho Code. (3-25-22)
b. Location and suitability of premises. (3-25-22)
c. An applicant who has been convicted of, or has plead guilty to, a felony or a crime of moral turpitude (an element of which is dishonesty or fraud) under the laws of any state, U.S. Territory or protectorate, the District of Columbia, or the United States will not be allowed to operate a Distributing Station. (3-25-22)
d. An applicant may not be a Close Relative of, or have a partnership or other close business relationship with any person employed by the Division who has the responsibility for establishing, approving, or influencing policies of the Division. (3-25-22)
e. An applicant may be a spouse, child, employee, blood relative, relative through marriage, or business associate of the retiring or deceased Distributor. (3-25-22)
f. Distributing Stations will not be established in a business that has a license to sell Liquor, Wine or beer by the drink. (3-25-22)
g. Where a new Distributing Station is created by the conversion of a State Store, an employee of that former state store can be chosen by the Division as the Special Distributor. (3-25-22)
h. If an existing Distributing Station is sold, the purchaser may, at the sole and absolute discretion of the Division, continue to operate the Distributing Station under comparable terms and conditions applied to the previous Special Distributor. (3-25-22)
07.General Operational Obligations. Special Distributors will: (3-25-22)
a. Furnish an adequate building or facility with suitable shelving, display counters and storeroom facilities. It must be kept clean and sanitary at all times. (3-25-22)
b. Not permit a person under the age of nineteen (19) to perform any acts for the Division. (3-25-22)
c. Keep the Distributing Station open for business in accordance with Section 23-307, Idaho Code. (3-25-22)
d. Not hold a partisan state elective political office. He cannot be a Close Relative of, or be in a business partnership with a person in a partisan state elective Political Office. (3-25-22)
e. Not present his views as being representative of the views of the Division and not attempt to politically influence customers in any manner. (3-25-22)
f. Make and transmit all reports as required by the Division in the time frame established by the Division. (3-25-22)
g. Be responsible for and account to the Division for all Liquor furnished by the Division. (3-25-22)
h. Only sell Liquor received from the Division. (3-25-22)
i. Only sell the Liquor at prices set by the Division in accordance with Section 23-207(h), Idaho Code. (3-25-22)
j. Not deliver Liquor off premise without explicit authorization of the Director. (3-25-22)
08.Days and Hours of Operation. (3-25-22)
a. Standard store hours will be in accordance with Subsection 010.07 of these rules. (3-25-22)
b. The Distributor will not exceed the maximum legal selling hours as set by the Director. (3-25-22)
09.Fiduciary Responsibility. Any and all unremitted monies collected in trust for the Division, and upon their receipt, are assigned to the Division in accordance with Section 23-401, Idaho Code. (3-25-22)
10.Liquor Shortage. The Distributor must pay the monetary value of any Shortage immediately after receipt of the request for payment from the Division showing its calculation of the Shortage. (3-25-22)
a. If the Distributor disputes Liquor or cash Shortages, he may request a hearing before the Director. (3-25-22)
b. Any payment made by the Distributor for Liquor shortages may be refunded in whole or in part if the Distributor's position is upheld by the Director. (3-25-22)
11.Compensation. The compensation paid by the Division to the Special Distributor will be full payment for the furnishing of all facilities, operating costs and expenses incidental to the operation of the Distributing Station, as well as full consideration for all services provided by the Distributor. Such compensation will be uniformly applied statewide in accordance with Section 23-305, Idaho Code. (3-25-22)
12.Supplies. The Division will furnish books, forms, and equipment for use by the distributor in transacting the business of the Division as required by law or as deemed necessary by the Director. (3-25-22)
13.Voluntary Agreement Termination. (3-25-22)
a. The Distributor Agreement may be voluntarily terminated by the Distributor upon written notice by certified mail or personal delivery to the Division or its specified representative specifying the date of termination. (3-25-22)
b. The Distributor will allow reasonable time for the Division to conduct a final inventory audit and to remove all Liquor. (3-25-22)
c. The sale of the Distributor's business to any other party, the forfeiture of the business to a lien holder, or the foreclosure upon the business will be considered voluntary Agreement termination. (3-25-22)
14.Automatic Agreement Termination. Upon the death of the Distributor, the Distributor's estate, assisted by the Division, will be responsible for the operation of the Distributing Station until the termination date, as established by the Director. (3-25-22)
15.Agreement Termination for Cause. The Division may terminate the Special Distributor Agreement for cause which includes, but is not limited to, any of the following: (3-25-22)
a. A Distributor who at any time becomes insolvent or experiences a substantial change in financial condition that, in the judgment of the Director, creates a financial risk to the Division. (3-25-22)
b. Significant breach of Distributor's obligations to manage the Distributing Station properly. (3-25-22)
c. Intoxication of the Distributor while in discharge of his duties as a representative of the Division. (3-25-22)
d. Participation of the Distributor in misappropriation of any assets of the Division. (3-25-22)
e. Distributor having been found guilty of a felony or a misdemeanor involving moral turpitude. (3-25-22)
f. Conduct detrimental to the good order of the Division as defined in IDAPA 15.04.01, "Rules of the Division of Human Resources and Personnel Commission," regarding classified conduct unbecoming state classified employees. Note - this Subsection in no way confers employee status on such Special Distributors, however outlines a specifically referenced standard of conduct. (3-25-22)
16.Agreement Termination Procedure. (3-25-22)
a. The Division will notify the distributor in writing, by certified mail or personal delivery, specifying the reasons for the proposed termination and its effective date. (3-25-22)
b. The Division may notify the Distributor that he is immediately suspended pending final determination of the proposed termination. At the time of notification, the Division reserves the right to conduct a final audit and remove all Division property pending a final determination. (3-25-22)
c. If the Distributor wishes a hearing on the proposed termination to present information relative to the reason given for termination, he will notify the Division in writing within twenty (20) days after receiving the notice of the proposed termination. (3-25-22)
d. Upon termination of this agreement, the Division will: (3-25-22)
i. Remove all property owned by it; and (3-25-22)
ii. Cease compensation to the Distributor as of the date of termination. (3-25-22)

Idaho Admin. Code r. 15.10.01.011