41:13:01:01.  Definitions. Terms used in this article are defined as follows:

          (1)  "Concessionaire," an operator of resort, restaurant, or marina services in the state park system who is authorized under a written lease or agreement directly with the Department of Game, Fish and Parks;

          (2)  "Concessionaire facilities," buildings, structures, fixtures, and other improvements permanently affixed to a building, structure, or lands subject to concession leases or agreements in such a manner as to be a part of the realty, provided by the concessionaire at the concessionaire's expense for the purposes of its concession lease or agreement. This term includes marina docks and slips provided by the concessionaire;

          (3)  "Government facilities," any buildings, structures, utility systems, fixtures, and other improvements permanently affixed to a building, structure, or lands subject to the concession leases or agreements that are constructed or acquired by the government and provided by the government for use by the concessionaire as provided in a concession lease or agreement;

          (4)  "Possessory interest," the financial interest of a concessionaire in concessionaire facilities, but not in the land on which such facilities are located, and in improvements to government facilities made at the concessionaire's expense with prior written approval of the commission;

          (5)  "Fair market value," as defined by the Uniform Standards of Professional Appraisal Practice, copyright 2003, by The Appraisal Foundation;

          (6)  "Personal property," any equipment, furniture, and goods necessary for concession operations that is not recognized as a fixture;

          (7)  "Commission," the South Dakota Game, Fish and Parks Commission;

          (8)  "Department," the South Dakota Department of Game, Fish and Parks; and

          (9)  "Qualified appraiser," a professional appraiser who holds the designation of a member of the Appraisal Institute or other similar designation.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          Reference: Uniform Standards of Professional Appraisal Practice, 2003 edition, The Appraisal Foundation. Copies may be obtained from The Appraisal Foundation, 1029 Vermont Avenue, N.W., Suite 900, Washington, DC 20005-3517. Cost: $20.

          41:13:02:01.  Application of article. Unless an existing concession lease or agreement provides to the contrary, this article applies to new leases of concessionaires executed after the effective date of this article. As it relates to the current concession leases or agreements for Custer State Park and Spring Creek Resort, the following sections from the existing (1990) administrative rules shall apply between the effective date of this article and the expiration of the current lease in effect: subdivision 41:13:01:01(4), § 41:13:02:02, and §§ 41:13:03:02 to 41:13:03:04, inclusive.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:02:02.  Establishment of possessory interest. A possessory interest may be established by a concessionaire in concessionaire facilities or government facilities to the extent the interest is purchased from a previous concessionaire, or paid for and constructed by the concessionaire with prior approval from the commission. Before construction, the commission shall identify all improvements and additions to the concession as either concessionaire facilities or government facilities. Possessory interest shall be transferred at the time a concession lease or agreement is executed and shall be so acknowledged in the new concession lease or agreement. Possessory interest values, including initial values at the beginning of a concession lease or agreement, shall be defined in or included as an exhibit to that document. The approval process for crediting of a possessory interest for improvements and additions funded by the concessionaire shall be defined in the lease or agreement with prior approval of the commission.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:02:03.  Compliance with performance standards. A concession lease or agreement shall include minimum performance standards. The concessionaire shall comply with these performance standards to the satisfaction of the commission. Such compliance constitutes satisfactory performance of the terms of the concession lease or agreement. Failure to comply with such standards constitutes grounds for termination of the concession lease or agreement.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:02:04.  Treatment of personal property. A concessionaire shall provide and be responsible for the maintenance, upkeep, and replacement of any personal property required under the terms of a lease or agreement.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:02:05.  Franchise fee. The concession lease or agreement shall provide for payment of a franchise fee or other monetary consideration as determined by the commission. In establishing a fee the concessionaire's reasonable opportunity to realize a profit on its operations commensurate with its capital invested and the obligations assumed shall be considered. A franchise fee shall be subordinate to protecting park values and providing quality visitor service.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:02:06.  Repair and maintenance reserve. In addition to a franchise fee, the concession lease or agreement may contain provisions that require the concessionaire to set aside a percentage of gross receipts or otherwise establish a reserve fund for repair, maintenance, and renovation to be used by the concessionaire for maintenance, repair, and renovation of concessionaire facilities and government facilities located in park areas and utilized by the concessionaire in the concessionaire's operations. The concessionaire and the commission shall review the reserve fund on an annual basis and agree upon a budget for the use of the reserve fund for the year in advance. The lease or agreement shall included project review and approval procedures. Projects to be funded entirely with reserve funds are not eligible for possessory interest credit. In certain circumstances, the lease or agreement or the commission may authorize the expenditure of repair and maintenance reserve funds or the establishment of another reserve for the replacement of personal property if the personal property is integral to the visitor experience or visitor safety. The concessionaire shall maintain the reserve fund. The concessionaire shall provide the commission with an annual accounting of the reserve fund's use. The commission and the concessionaire shall make every effort to expend all reserve funds by the end of the lease or agreement term. If there is a surplus at the end of the lease or agreement term, any remaining reserve funds shall be transferred to the commission for the purpose of ongoing maintenance of concessionaire facilities and government facilities associated with the respective concession lease or agreement. If there is a deficit at the end of the lease or agreement term, the concessionaire shall be granted possessory interest credit in the amount of the deficit.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:02:07.  Fees, rates, and prices for services and merchandise offered by a concessionaire. All fees, rates, and prices offered to the public by a concessionaire shall be reasonable and comparable to the fees, rates, and prices offered for similar services in the region of the concessionaire's operations or outside the region if similar services are not provided in the region. In addition, the commission reserves the right to establish reasonable standards as to the nature, type, and quality of the concessionaire's service and merchandise.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:02:08.  Names, logos, trademarks, and copyrights. Any names, logos, trademarks, or copyrights developed during or pursuant to a concession lease or agreement that in any way associates with, identifies, implicates, or infers an affiliation with the State of South Dakota Division of Parks and Recreation or the state park system, must receive prior approval from the commission and belongs to the state upon creation and continues in the state's exclusive ownership upon termination of the lease or agreement.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:02:09.  Information and reporting. The department, commission, or their representative shall have access to concessionaire books and records for the purposes of examination. The lease or agreement shall include requirements for reporting of financial data or reports, including any audit requirements and other operation reports and indicate the required frequency of the reporting. The lease or agreement shall include provisions that the concessionaire waive any right to the confidentiality of propriety information concerning the lease or agreement that the department determines to include in a prospectus issued under this article.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:02:10.  Insurance. The lease or agreement shall include minimum requirements for insurance, including types of insurance and amounts of coverage levels, and those to be named as additionally insured.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:02:11.  Collateral. The lease or agreement may require the concessionaire to furnish appropriate forms of collateral to insure performance of the obligations included in the lease or agreement.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:02:12.  Breach of lease or agreement. The lease or agreement shall contain provisions addressing breach of the lease or agreement by the commission or the concessionaire.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:03:01.  Duration of concession lease or agreement. The concession lease or agreement, except for existing concession leases or agreements under negotiation, amendment, or renegotiation on the effective date of this article, may be issued for a term that the commission determines is required to allow the concessionaire a reasonable opportunity to realize a profit on the concessionaire's operations commensurate with the concessionaire's capital invested and the obligations assumed for the planned and negotiated investments by a concessionaire.

          If, during the term of a concession lease or agreement, the commission and concessionaire agree that an authorized major addition, renovation, repair, or replacement should be made to the concessionaire's facilities or governmental facilities, to be provided by the concessionaire at the concessionaire's expense, the commission may extend the lease or agreement as provided in this section. At such time, all terms and conditions of the lease shall be reevaluated. This paragraph does not apply during the last 18 months before the expiration of the concession lease or agreement.

          During the term of the concession lease or agreement, but not during the last 18 months before the expiration of the concession lease or agreement, the concessionaire may present to the commission for authorization a proposal for a major project that the concessionaire believes warrants an extension to the lease or agreement. This proposal shall include the following:

          (1)  A description of the proposed project, including consistency with park goals, and a description of why the improvements are in the public interest;

          (2)  An independent assessment of the market and financial viability of the proposed project;

          (3)  An independent cost estimate of the proposed project; and

          (4)  An analysis of the number of additional years required as part of the extension of the lease or agreement.

          The commission shall review the proposal within 60 days and evaluate the proposal using the criteria listed above.

          If determined by the commission to be in the public's best interest, the commission may at least 12 months prior to the termination of an existing concession lease or agreement negotiate with the concessionaire new lease terms and conditions. If the commission determines not to negotiate or the concessionaire does not accept the commission's terms and conditions, the existing agreement shall terminate according to the terms of the agreement. The commission shall select and award a new concession or lease agreement as provided in § 41:13:03:09 and this chapter. Nothing in this section is intended to provide a concessionaire with any expectation of concession lease or agreement extension or renewal.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:03:02.  Procedure to determine compensation to a concessionaire upon expiration of lease or agreement. Prior to the expiration of a concession lease or agreement, the following procedure shall be used:

          (1)  At least 12 months before expiration of a concession lease or agreement the commission shall determine the fair market value of the possessory interest of the concessionaire in the concessionaire facilities or government facilities pursuant to the end date of the contract and subdivision 41:13:03:04(1). The fair market value shall be determined by an appraisal performed by a qualified appraiser. A copy of the appraisal shall be provided to the concessionaire upon its completion. The department and the concessionaire shall each pay 50 percent of the cost of the appraisal. Upon recommendation of the department, the department and concessionaire shall mutually select the qualified appraiser. If agreement cannot be reached within 15 days, the commission shall have the final determination of the qualified appraiser;

          (2)  If the department or the concessionaire is not satisfied with the appraised fair market value, either party may request in writing, within 30 days after receipt of the appraisal value, that the fair market value be determined by binding arbitration as provided in § 41:13:03:03; and

          (3)  Upon receipt of the appraisal or the valuation determined by arbitration, the commission shall prepare and publish a prospectus containing the valuation of the possessory interest of the concessionaire facilities or government facilities in an attempt to find a qualified successor concessionaire.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:03:03.  Procedure for binding arbitration. The procedure for binding arbitration is as follows:

          (1)  The department or concessionaire may, by written notice to the other within 30 days after receipt of the appraisal, appoint an arbitrator of its choice. The other party, by written notice within 15 days after receipt of notice, shall appoint a second arbitrator of its choice. In default of a second appointment, the first arbitrator appointed shall be the sole arbitrator;

          (2)  When two arbitrators have been appointed, they shall, if possible, agree on a third arbitrator and appoint the arbitrator by written notice signed by them. A copy of their notice shall be mailed to each party within 15 days after notice has been given of the appointment of a second arbitrator;

          (3)  If 18 days elapse after the appointment of the second arbitrator without notice of appointment of the third arbitrator, then both parties shall select the third arbitrator from members of the alternative dispute resolution section of the State Bar of South Dakota; and

          (4)  The arbitrators shall hold an arbitration hearing at a location determined by the arbitrators within 30 days after the final appointment of the arbitrators. The arbitrators shall allow each party to present their case, evidence, and witnesses, if any, in the presence of the other party and shall determine the fair market value of the property.

          Each party shall pay the cost and expense of its appointed arbitrator. The costs and expenses of a sole arbitrator or the third arbitrator shall be paid equally by the department and the concessionaire.

          The determination of the majority of the arbitrators is binding on the parties to the arbitration although each party retains his right to appeal any questions of law arising at the hearing.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          Cross-Reference: Evidence, SDCL title 19.

          41:13:03:04.  Compensation to concessionaire. Compensation for a possessory interest held by the concessionaire upon expiration of the concession lease or agreement, unless otherwise provided in the lease or agreement, shall be determined as follows:

          (1)  Possessory interest in concessionaire facilities or government facilities authorized by the commission shall be valued for purposes of compensation to the concessionaire by the successor concessionaire at fair market value; and

          (2)  No compensation is due the concessionaire from a successor concessionaire for the concessionaire's personal property used in operations under a lease or agreement. However, a successor concessionaire may purchase such personal property from the concessionaire subject to mutually agreed upon terms;

          (3)  The department retains the option to purchase concessionaire possessory interest in concessionaire facilities if the Legislature appropriates funds for acquisition in the amount of the fair market value or the value determined by arbitration as provided in § 41:13:03:03; and

          (4)  If the department chooses not to issue a subsequent lease or agreement, the department retains the option to direct the concessionaire to remove the concessionaire facilities from the park and restore the premises to the extent that the facilities had an impact upon the grounds. In this situation, the concessionaire shall be compensated for the concessionaire's possessory interest in concessionaire facilities or government facilities in the amount of book value and the cost to the concessionaire of restoring the premises to the extent that the facilities had an impact on the grounds. Book value is the unrecovered cost of the possessory interest in concession facilities or government facilities that have been identified in the lease or agreement and are represented as such on the concessionaire's federal tax return or audited financial statements.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:03:05.  Preferential right of renewal. Repealed.

          Source: 16 SDR 148, effective March 21, 1990; repealed, 32 SDR 55 effective October 17, 2005.

          41:13:03:06.  Procedures for preferential right of renewal. Repealed.

          Source: 16 SDR 148, effective March 21, 1990; repealed, 32 SDR 55, effective October 17, 2005.

          41:13:03:07.  Consideration by commission. Repealed.

          Source: 16 SDR 148, effective March 21, 1990; repealed, 32 SDR 55, effective October 17, 2005.

          41:13:03:08.  Responsibilities and procedures prior to issuance of new lease or agreement. Prior to the issuance of a new concession lease or agreement, the commission may require the assistance of the concessionaire in developing materials for a public solicitation. This assistance may include access to facilities and records for performing a condition assessment of the facilities (including concessionaire facilities and government facilities), listings of personal property, financial and utilization reports, and other cooperation. The concessionaire shall provide such assistance as reasonably requested. Prior to commencement of the steps included in this section, the concessionaire and the commission shall agree on terms of confidentiality and treatment of provided information not addressed in § 41:13:02:09.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:03:09.  Procedures for selection and award. Except as provided in § 41:13:03:01, the commission shall award concession leases or agreements through a public solicitation process. The public solicitation process shall commence with the issuance of a prospectus. The prospectus shall invite the public to submit proposals for the contract. The prospectus shall describe the terms and conditions of the concession lease or agreement to be awarded and the procedures to be followed in the selection of the best proposal. The commission may not issue a prospectus earlier than 12 months prior to the expiration of a related existing concession lease or agreement.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:03:10.  Prospectus requirements. The prospectus shall include:

          (1)  Minimum visitor service requirements;

          (2)  The minimum franchise fee or other forms of consideration required by the state;

          (3)  Lease term;

          (4)  Minimum performance standards;

          (5)  Measures requested to ensure the protection and preservation of park resources;

          (6)  Capital investments, if any;

          (7)  Facilities and services provided to the concessionaire by the state for the concessionaire's use and operation over the course of the lease;

          (8)  An estimate of the possessory interest compensation due to the existing concessionaire at signing;

          (9)  Gross receipts by category for the last three years and the most recent year's concessionaire's personal property and merchandise inventory;

          (10)  Selection factors, including minimum requirements; and

          (11)  Other such information that the commission may deem necessary to assist bidders in the preparation of a prospectus.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:03:11.  Principal selection factors. The principal selection factors are:

          (1)  Managerial experience;

          (2)  Financial capabilities;

          (3)  Franchise fees and benefits offered to the department and the state; and

          (4)  Any other criteria considered by the commission to be pertinent, including any additional proposed capital investment.

          A prospectus shall indicate the maximum potential scoring available for each of the selection factors.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:03:12.  Publication of notice of issuance of prospectus. Upon issuance of the prospectus, the department shall publish notice of issuance in a manner selected to notify persons likely to be interested in providing a response to the prospectus. Notice shall include a narrative description of the prospectus; the solicitation process; where to obtain a copy of the prospectus; and the place, date, and time responses to the prospectus are due. Two publications of the notice of issuance of the prospectus in at least three newspapers of general circulation in different parts of the state, with the first publication seven to ten days prior to the second, shall be construed as compliance with the publication requirement.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:03:13.  Minimum period to respond to prospectus. Interested parties shall have a minimum of 30 days to respond to the prospectus, with the actual numbers of days to be specified in the prospectus.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:03:14.  Rejection by commission. A proposal may be rejected by the commission if the proposal has not met the minimum requirements and is unresponsive to criteria outlined in the prospectus.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:03:15.  Proposal review -- Selection of successor -- Continuation of existing lease. Six months prior to the expiration date of the concession lease or agreement, the department shall review the proposals it has received from prospective concessionaires.

          Three months prior to the expiration date of the concession lease or agreement, the commission shall select the successor concessionaire based upon criteria outlined in the prospectus.

          If the commission does not find a qualified prospective concessionaire or does not select a successor concessionaire by the expiration date of the concession lease or agreement, the commission may continue the existing concession lease or agreement on an annual basis.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:03:16.  Requirements in the event of termination or expiration. Upon termination of the lease or agreement for any reason, or upon its expiration, and except as otherwise agreed upon between the concessionaire and the department, the concessionaire shall, at the concessionaire's expense, promptly vacate the area defined in the lease or agreement. The concessionaire shall remove all personal property and repair any damage caused by installation or removal of such personal property, except as agreed upon between the concessionaire and the department.

          In addition to these actions, the lease or agreement may include specific actions to be taken by the concessionaire to assist in the continuation of operations.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:04:01.  Conflicting rules not applicable to Custer State Park. Any application of a rule in this chapter that conflicts with SDCL 41-17-22.4 does not apply to concessionaire leases of property located in Custer State Park.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:04:02.  Assignment, sale, or transfer. A concessionaire may assign, sell, or transfer the concessionaire's possessory interest in a concession lease or agreement in the event of death to a beneficiary, assignment for collateral purposes to a lender, or a transfer to existing partners or shareholders only with prior written approval of the commission.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:04:03.  Sale -- Change in controlling interest. The sale referred to in § 41:13:04:02 includes any sale, assignment, or transfer of an interest in a concession lease or agreement, assets not in the ordinary course of business, shares of stock, or any other interest in the business entity, including a corporation, partnership, or other association of persons, which has the effect of transferring controlling interest of the business entity from that which was present at time of execution of the original lease or agreement or as subsequently approved by the commission to another person or business entity.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:04:04.  Notice of intent to sell, bankruptcy, or insolvency. A concessionaire shall submit in writing to the department notice of the concessionaire's intention or desire to sell, assign, or transfer any of the property referred to in § 41:13:04:02. The notice of intent is not effective for purposes of this chapter if it is submitted within 18 months of the expiration of the concession lease or agreement. The notice of intent can be withdrawn at any time by the concessionaire if all reasonable costs and expenses incurred by the department for the prospectus are paid by the concessionaire.

          The concessionaire shall give the commission notice, within five days, after the filing of any petition in bankruptcy, filing any petition seeking relief under any federal bankruptcy laws, or making any assignment for the benefit of creditors. The concessionaire shall also give the commission, within five days, notice of any petition or other proceeding against the concessionaire for the appointment of a trustee, receiver, or liquidator, or the taking by any person or entity of the rights granted by the concession lease or agreement, or any part thereof upon execution, attachment, or other process of law or equity.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:04:05.  Department to issue prospectus. Upon receipt of the notice of intent to sell, the commission shall prepare and the department shall publish a prospectus for the lease of its facilities and the sale and transfer of the possessory interest of the concessionaire in government facilities or concessionaire facilities used to provide the concession services in an attempt to find a qualified successor concessionaire. The concessionaire shall provide to the department for inclusion in the prospectus a listing of personal property that the concessionaire is willing to sell to a successor concessionaire as provided in subdivision 41:13:03:04(2). This listing and any value the concessionaire provides for this personal property to the department shall be included in the prospectus for informational purposes. The value of the concessionaire's possessory interest in concessionaire facilities or government facilities shall be in accordance with subdivision 41:13:03:02(1) and the value shall be published accordingly in the prospectus. With the approval of the commission, the prospectus may or may not be consistent with the terms of the existing concession lease or agreement. If a written agreement is not reached within six months from the first publication of the prospectus and approved by the commission, the commission may, if requested in writing by the concessionaire, publish another prospectus as provided in this section.

          Source: 16 SDR 148, effective March 21, 1990; 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:04:06.  Commission to select successor. Repealed.

          Source: 16 SDR 148, effective March 21, 1990; repealed, 32 SDR 55, effective October 15, 2005.

          41:13:04:06.01.  Procedures for selection and award under sale and transfer. The commission shall select the successor concessionaire based upon criteria outlined in the prospectus.

          Source: 32 SDR 55, effective October 17, 2005.

          General Authority: SDCL 41-17-1.1(6).

          Law Implemented: SDCL 41-17-1.1(6).

          41:13:04:07.  Consideration by commission. Repealed.

          Source: 16 SDR 148, effective March 21, 1990; repealed, 32 SDR 55, effective October 17, 2005.