Administrative Regulation Dealing with Permit Auction in Indiana

Administrative regulation dealing with permit auction in Indiana

Indiana Administrative Code

Title 905. ALCOHOL AND TOBACCO COMMISSION
Article 1. GENERAL PROVISIONS
Rule 33.1. Permit Auction

905 IAC 1-33.1-1. Permit auction

Authority: IC 7.1-2-3-7 ; IC 7.1-3-22-9

Sec. 1. (a) The commission shall conduct auctions under IC 7.1-3-22-9 as often as necessary. However, an auction shall be held at least annually.

(b) A permit is available for purposes of this section in one (1) of the following circumstances:

(1) Where a permit becomes inactive for whatever reason, revocation, failure to renew, denial of renewal, surrender, or abandonment, thereby creating a vacancy when none existed before in the quota provisions of IC 7.1-3-22.

(2) Where a change in the population, as defined in IC 1-1-4-1(13) , results in an increase in the quota.

(c) Permits that have become available under subsection (b) shall be advertised in the same manner as required in IC 5-3-1-2(e) and IC 5-3-1-6 . The advertisement shall include the following:

(1) The type of permit available.

(2) The city, town, or unincorporated area where the permit may be placed in use.

(3) The date, time, and location of the auction.

(4) Instructions on obtaining the required prequalification application.

(d) Any person who wishes to bid at the auction must submit completed auction prequalification application for each permit desired no fewer than fifteen (15) days prior to the advertised date of the auction. Each prequalification application must be accompanied by bid security in the form of a cashier's check or certified check payable to the Indiana alcoholic beverage commission in the amount of the basic first year permit fee. Bid security will be returned following the auction to all unsuccessful bidders and to the successful bidder if the application is denied. The commission shall notify each person who submits a prequalification application of their acceptance or rejection as a bidder. Only accepted bidders may bid at the auction.

(e) All bidders will be required to sign a noncollusion affidavit immediately prior to the auction.

(f) The minimum starting bid for each permit shall be in an amount equal to the minimum annual fee for the permit type. The commission shall not be obligated to accept any bid lower than the minimum starting bid.

(g) All amounts bid at the auction are in addition to the first year permit fee. The successful bidder's bid security will be retained as the basic first year permit fee. The successful bidder must sign a purchase agreement in the amount of the successful bid immediately after the permit auction and shall within thirty (30) days submit a completed application and a cashier's check or certified check in the amount of the successful bid. The permit shall be held in escrow under IC 7.1-3-1-3.5 and 905 IAC 1-30-1 pending the completion of the application process.

(h) In the event the successful bidder fails to complete the application process for whatever reason, the commission shall accept the second highest bid under the following conditions:

(1) The commission finds that the second highest bid is reasonable.

(2) The commission finds that a second auction would be unlikely to result in a higher bid.

(i) Any permit not sold at auction shall become available for application on the first business day sixty (60) days after the auction.