A Kalispell liquor store faces the loss of its state contract over citations for alleged violations that included selling liquor-filled chocolates and failing to file paperwork with state regulators.

The Revenue Department issued a final agency decision in January that BYOB Liquor should lose its contract. Today, store owner Donna Glantz will ask a district judge in Kalispell to allow her business to remain open while she appeals the ruling.

Agency attorney Joel Silverman said BYOB violated its contract with the state on several counts, including some related to All Beverage Corp., which is owned by Donna Glantz’s son, Toby Glantz, and does business as Polson Beer, Wine and Liquor.

Toby Glantz also faces revocation of his liquor license, Silverman told The Associated Press on Tuesday.

The violations charged against BYOB include selling liquor to ABC without collecting payment at the time of delivery, a violation of the contract that also gives BYOB an undisclosed interest in Polson Beer, Wine and Liquor.

The owner of a state agency store is not allowed to have an ownership interest in any other licensed establishment, including liquor distributors or manufacturers, Silverman said.

The state also found that Donna Glantz owns the building that houses her son’s bar and was not charging him rent, giving her an undisclosed interest in the bar.

BYOB also was accused of failing to produce sales invoices for a period of time in 2008, failing to provide reporting to the department for two months in 2009 and selling liquor-filled chocolates in violation of the state inventory policy for agency liquor stores.

“The whole point of not allowing liquor-filled candies is that it blurs the line between liquor and products marketed for children,” Silverman said.

Jim Glantz, Donna’s husband, said BYOB has been selling the cream-and-liquor filled candies for 14 years without issue.

“It’s not something we were doing under the veil of secrecy,” Jim Glantz said. “We’ve been operating under our interpretation of the law for 15 years, and all of a sudden the interpretations have changed under the new regime and they’ve convoluted the laws. You see them sold all over the state, and all of a sudden it’s illegal.”

Jim Glantz said the allegations are nitpicky.

“The state has bigger problems than liquor-filled chocolates, but they’re focusing on liquor-filled chocolates,” Glantz said. “They are running helter-skelter over a private business in an attempt to close us down. The store’s on the line.”

Silverman said the candies aren’t the only issue and the agency is pursuing other alleged violations by BYOB.

The state alleges BYOB sold liquor to ABC at a case discount greater than that allowed by law, sold liquor to ABC below the posted price before ABC had a liquor license and sold liquor-filled candies to ABC without collecting payment. The state also cited BYOB for failing to make timely payments to the department for liquor deliveries.

A hearings examiner has found that Toby Glantz should lose his liquor license. Glantz is seeking a final agency decision.

The state alleges Toby Glantz failed to provide requested financial documents; failed to make lease payments, thus giving Donna Glantz an undisclosed ownership in his business; acquired liquor from BYOB without paying at the time of delivery, creating BYOB’s undisclosed ownership interest and sold liquor-filled candies.

The state also found that based on prior counts, including two counts that were settled in early 2009, Toby Glantz’s record demonstrates that he is not likely to operate the establishment in compliance with Montana alcoholic beverage code.