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Legislature: Black to drop smoking exemption bill
    As the 2009 session of the Montana Legislature wheels into gear, most owners of businesses licensed for the sale of adult beverages, gaming and commercial foodservice are likely operating on heightened alert, frequently checking on legislation through their business associations, lobbyists and the Internet.
    Perhaps the biggest legislative news for licensees near Montana Tavern Times deadline was that Sen. Jerry Black (R-Shelby) was dropping his quest to introduce and pass a bill to allow businesses licensed to serve alcohol to continue to allow smoking on premise.
    The Associated Press reported Black conceded the bill was "dead on arrival" and that he was putting the bill on hold. A Shelby tavern operator, Darrell Keck, had asked Black for the legislation
    “I do not intend to pursue it in any way," the AP quoted Black as saying, “although I do agree with my requester of the bill that it is a property rights issue, and customers should have a choice of going to a smoking or a non-smoking establishment. But people are overwhelmingly supportive of the Indoor Clean Air Act. So there is no sense in pursuing a bill that has no chance of passing.”
    As of January 20, six alcohol related bills had been introduced that would affect the way licensed businesses operate while 14 unintroduced bill drafts remained in the wings. One bill to increase DUI penalties had been introduced but 13 more dealing with DUI remained unintroduced or on hold.
    The action on gaming is considerably lighter with just one gaming bill having been introduced, five with their drafts on hold and one where the draft is in process.
    A bill to clean up the restaurant beer and wine license language has been introduced by Rep. Robin Hamilton (D-Missoula). HB195 would also eliminate the "preference" for an applicant who had applied previously in order to eliminate the large backlog of such preferences earned largely through pure speculation.
    The bill was referred to the House Business and Labor Committee January 8 and had its first hearing Jan. 16. The Montana Tavern Asociation appeared in support of the bill. It was voted on in committee Jan. 19 and passed 16-0. It passed its second reading 99-1 on the House floor Jan. 20, passed its second reading 99-0 Jan. 21 and was transmitted to the Senate Jan. 22.
    Rep. Jeff Welborn (R-Dillon) is sponsoring HB211 which is entitled: "An act creating a voluntary certified responsible vendor program that allows (alcohol) retailers...to send their employees to qualified training classes dealing with the sale of alcohol beverages; providing that certified responsible vendors are entitled to a defense against license revocation or suspension and mitigation of administrative penalties or fines for an employee's illegal sale..."
    That bill was assigned to House Business and Labor Jan. 9 and had its first hearing Jan. 22. The lead supporter of the bill is the Montana Petroleum Marketers Association. A fiscal note was printed Jan. 21 that indicated the Department of Revenue (DOR) estimates the bill would cost $45,806 in its first year and $41,306 in subsequent years, requiring a .75 full-time equivalent staffer (FTE).
    Rep. Bob Ebinger (D-Livingston) had a pair of bills tavern operators were following: HB234 and HB297. The first bill would authorize beer and wine tasting events, under permit, at all off-premise beer and wine retail outlets such as grocery stores, big-box stores, drug stores and convenience stores. An attendee at one of these events (limited to 12 per year per premise) would be allowed to consume 10 one-ounce servings. The bill does not state whether the off-premise licensee may or may not charge a fee to attendees.
    HB234 was assigned to Business and Labor Jan. 12 and was scheduled for a hearing Jan. 22. A fiscal note was printed Jan. 23 which stated, "The DOR estimates that this new permit will require an additional half FTE (full-time equivalent staffer) and will cost $34,979 in the first  year and $30,479 in the second year, increasing in subsequent years.  These increased costs will reduce the  liquor profits transferred to the general fund." 
    Coincidentally, Rep. Cliff Larson (D-Missoula) has bill draft LC1839, which also would authorize tastings. It had not yet been introduced as of Jan. 26. It differs from Ebinger's bill in that it would authorize up to two annual tastings hosted by off-premise retailers to be conducted in establishments licensed for on-premise consumption, and provides that no fee may be charged to attend. Sample servings would be restricted to two ounces.
    Ebinger's other bill, HB297, would allow on-premise sale of fortified wine under an on-premise beer and wine license. "Fortified wine" means wine that contains more than 16 percent but not more than 24 percent alcohol by volume. Such strong adult beverages have been regulated as "spirits" under Montana law and both cabaret and conventional on-premise beer and wine license holders are currently prohibited from selling spirits.
    The bill was assigned to Business and Labor Jan. 19 and a hearing had been scheduled for Jan. 29. No fiscal note was deemed necessary.
    On the Senate side of the capitol, Sen. Greg Barkus (R-Kalispell) is sponsoring SB172 which would authorize "social host" ordinances and sanctions. It was assigned to the Senate Local Government Committee Jan. 7 and was to have its first hearing Jan. 23. MTA has stated it supports this bill.
    The bill defines what constitutes a "gathering," a "host," "premises" and "social host." This last is defined as "a host who knows or reasonably should know that a person under 21 years of age is in possession of or is consuming an alcoholic beverage at a gathering on the host's premises."
        The bill language says it is meant to discourage underage drinking and provides for a civil penalty to not exceed $500 for each violation, but also provides that a person convicted under such an ordinance may be ordered to pay all costs and expenses involved in the case.
      Also of importance to operators of taverns, casinos and restaurants is Sen. Don Steinbeisser's (R-Sidney) SB253 which would allow tips to be credited toward fulfillment of minimum wage beyond $6.90 per hour.
    The key provision in the bill states that the bill will apply "for a tipped employee who customarily and regularly receives tips... If the minimum wage increases above $6.90 an hour, the employer may count tips as wages for the tipped employee to make up the difference between $6.90 and the new minimum wage."
      Constitutional Initiative 151, passed by voters in 2006, established a higher minimum wage, but also tied future increases in the wage to increases in the Consumer Price Index, forcing the minimum wage up any time prices increase. Further, the federal government will boost the federal minimum wage to $7.25 per hour July 1. Montana is one of only six states that does not allow employers to credit tips against fulfillment of minimum wage requirements.
    The bill was assigned to Senate Business Labor and Economic Affairs Jan. 20 and its first hearing was scheduled Jan. 28.
    Rep. Bill Nooney (R-Missoula), has had a bill drafted at the behest of Montana brewers, LC2079, that would redefine the legal alcohol content of beer, increasing it from the current 7 percent standard up to 14 percent. The bill has not yet been introduced.
    Sen. Carol Juneau (D-Browning) has requested a bill draft, now on hold, (LC614) to "Regulate sale of alcoholic energy drinks;" Rep. Llew Jones (R-Conrad), has a draft request on hold to "Revise liquor store commissions;" and Rep. Dave McAlpin (D-Missoula) has submitted a draft request to "revise law relating to the sale of alcohol to underage persons."
    A few other draft requests of interest to licensees have been logged including Rep. Paul Beck's (D-Red Lodge) LC2226 to "generally revise liquor laws" and Rep. Mike Miller's (R-Helmville) similar LC2259 to "revise liquor laws;" Rep. Galen Hollenbaugh (D-Helena) has received the draft of LC2231 to "Revise liquor excise tax for smaller producers" and Rep. Jon Sesso (D-Butte) has received a draft for his LC2234 to enact a "state tax on servings of alcohol for local scholarships and prevention."
    Also, Rep. Mike Miller (R-Helmville) has received a bill draft for an "entrepreneur alcoholic beverage license."

    Montana Tavern Association Government Affairs Counsel Mark Staples said industry has ample input on legislation vetted by the GAC and so almost always supports anything that has passed council muster.
    Staples said Sen. Tropila's bill is no exception as at its first hearing before the Senate Business Committee, MTA, Gaming Industry Association and Montana Coin Machine Operators Association testified in support. It passed out of committee the same day on a unanimous vote.
    The bill would: provide for licensure of "associated gambling businesses," which might be providers of gambling-specific accounting packages, gaming machine recyclers and so on.
    It would also allow for some revisions to currently allowed bingo card formats.
    It would give the Gambling Control Division authority to regulate violations of raffle laws, would redefine what is a non-profit for the purpose of conducting raffles, would remove the $5,000 cash prize limit in some circumstances, would require some raffle record keeping and would specifically prohibit the conduct of raffles on the Internet.
    Finally, it would prohibit the use of credit cards in relation to any gambling activity, even to obtain legitimate cash advances for the purposes of gambling.
    The bill was referred to the Senate Business, Labor, and Economic Affairs Committee Dec. 20 and had its first hearing Jan. 16 where it received an 11-0 approval. It was scheduled for a second hearing Jan. 20, and passed 49-0. On third reading Jan. 21, it passed 46-2.
    The rest of the gambling bill draft requests have been put
on hold or cancelled, with the exception of Rep. Sharon Stewart-Peregoy's (D-Crow Agency) LC2201, which has been drafted and sent to the requestor but was unavailable for viewing at deadline. It is listed on the legislative site under both the "gambling" category and "Indians."
    The MTA is also following bills related to business operations not specific to alcohol and gambling such as labor laws, tax bills and so on. Contact the MTA office for further information.