When the Montana Tavern Association's Legislative and Gambling Committee convened at 9:30 a.m. Sept.12, mid-way through the group's annual convention, the first topic was the recent lottery for the right to apply for one of the new-issue "cabaret" restaurant beer and wine licenses.
The committee was called to order by chairman Pat Kelly who promptly asked Mark Staples, MTA attorney and government affairs counsel, to lead the discussion.
The lotteries to award new "cabaret" licenses were the result of Senate Bill 140 sponsored by Sen. Dan Weinberg, (D-Whitefish) in the 2007 legislative session. The bill was designed to relieve some pressure on the alcohol license quota system while preserving the state's interest in regulating the proliferation of on-premise alcohol availability. It also closed loopholes in the original cabaret license legislation passed in 1999.
The licenses are allowed for businesses with a service bar only, to serve beverages with table-served meals only, and to serve between the hours of 11 a.m. and 11 p.m. with not less than 65 percent of revenues derived from food sales. The licenses do not allow gambling.
Those who had sold a license within the previous year were barred by statute from applying.
Staples said in hindsight some additional steps might have reduced the number of frivolous and speculative lottery applications, since it was apparent many who applied "didn't know or didn't care to know" exactly what was at stake and what would be involved in the ultimate procurement of a license.
Staples emphasized those who applied and were drawn in the lottery merely won the chance to apply for a license, a rigorous and not inexpensive process. Some may have misunderstood and believed, if drawn, they would be awarded an actual license and, further, may have believed they could simply, quickly turn around and sell the license.
Even if an applicant was drawn, Staples pointed out, they would still have to pay the fees, go through the same investigations, finger printing and the financial disclosure process all licensees undergo. Then they would, "If thay have any sense," he said, have to acquire liquor liability insurance. Finally, the license must be put to use in a bona fide restaurant within the year before it could become marketable.
"When the wheat is separated from the chaff," Staples said, "most of these licenses will go to those who are truly qualified and intend to add, in good faith, beer and wine to their fine dining offerings. It will shake out; it will work."
In fact, a Montana Department of Revenue Liquor Division official told the Montana Tavern Times that the division had received notice that a significant number of speculative lottery applications have been withdrawn, meaning those licenses will remain available.
It was reported two municipalities have attempted to restrict the number of machines in an establishment through zoning ordinances and one has attempted to restrict, more than state law, the kinds of gambling that may occur in a licensed premise.
The committee agreed the situation bears watching and Staples said he would begin some preliminary research into the situation while visiting with some local officials involved in the matter.
On the issue of the pending indoor smoking ban slated to take effect Oct. 1, 2009, one member objected to a state-sponsored commercial campaign that has been airing which advises patrons to avoid establishments that still allow smoking. The member said operators have been cooperating so far in good faith, but that for the state to continue its attack on smoking establishments during the transition period was ethically questionable at best.
Another member said he resented being forced to assume the role of a law enforcement officer when it comes to dealing with recalcitrant smokers, a matter that more appropriately belongs in the hands of legal authorities, he said.
With that, the committee adjourned and members hustled to load buses for men's and women's luncheons conducted at Vista Linda and Mackinaw's in Somers some miles to the south.
Source: The Montana Tavern Times, September, 2007, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.