MTA committee considers dozens of legislative bills
"It's like trying to take a drink of water from a fire hose."
So said Montana Tavern Association Government Affairs Counsel Mark Staples in characterizing the current legislative session when he addressed the Montana Tavern Association's Legislative and Gambling Committee.
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Mark Staples
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The committee convened at Jorgenson's in Helena January 27. Committee chairman Pat Kelly was absent so Staples acted as chair.
Almost one month into the 2009 meeting of the Montana Legislature, Staples and the committee reviewed and discussed dozens of bills (and in some cases decided on a position or course of action) that had been drafted or introduced, many of them dealing with licensing questions.
House Bill (HB) 211 is a bill that would coax licensed businesses to voluntarily send staff to responsible server training courses in order to reduce under-age access and over-serving. The bill would place more responsibility on servers while allowing licensees to invoke their earnest training efforts as a defense in civil proceedings for suspension or revocation of a license.
Staples said, however, the Department of Revenue was pressing for an amendment to establish some violation threshold to trigger suspension and revocation. He said he thought the matter could be worked out in a reasonable compromise and that MTA was involved.
The committee also discussed SB253 which would allow some crediting of tips toward fulfillment of minimum wage obligations over $6.90 per hour. Staples noted the Montana Restaurant Association was taking the lead on the issue.
He said the bill could conceivably make it out of the Republican majority Senate but would face a strong challenge in the House, which is split evenly along party lines. Staples said Gov. Brian Schweitzer had already voiced his strong opposition so a veto could be waiting at the end of the road.
Another bill, HB352, would allow state "agency" liquor stores to locate adjacent to grocery stores. Staples told the group only one individual was seeking the change, and said it has been long-held social policy that citizens of Montana do not want strong spirits sold in groceries, and that "adjacent" is pretty to close to "in."
Staples reminded the group that the liquor distribution system in the state has been very carefully and deliberately constructed over the decades, and changes within it are not trifles, but that the agency store operators provide a valuable and convenient service to on-premise licenses so needed to remain profitable.
The committee asked Staples to oppose the bill given the fact that only one person was pushing for it who wasn't even a store owner.
A couple of bills to allow wine tastings in off-premise establishments were discussed. One had been put on hold and the other died in committee the next day. It was noted an on-premise license with a catering endorsement can currently be used to conduct off-premise tastings, and that "tastings" are currently widely held in Montana, so little need for the change was seen by members.
A bill draft request calling for a gambling tax increase had been requested by Sen. Christine Kaufmann (D-Helena) but the request had been put on hold. Committee members told Staples that if such a bill is introduced, its defeat was to be among his highest priorities.
Another tax increase bill, Rep. Jon Sesso's (D-Butte) LC2234, had been drafted and sent to the requestor, though text was unavailable at the time. It's title indicated it would call for an alcohol tax to fund scholarships. Members of the committee asked Staples to strongly oppose this tax increase and any others, especially in light of the current economy and significant recent hospitality business revenue declines.
Staples addressed the strong push being made by some interests to allow cities to levy targeted sales taxes with the approval of local voters, noting these taxes were inevitably charged to alcohol by the drink, prepared meals and accommodations.
The committee indicated opposition would be appropriate unless any proposed sales tax was more broadly based.
Staples told the committee that Rep. George Groesbeck (D-Butte), who had indicated he would carry legislation to mitigate the negative effects of a new interpretation of the independent contractor statute as it applies to entertainers, had suddenly and sadly passed away just before the session began.
He said the bill still had a place holder that had been assigned to Rep. Groesbeck's replacement, Rep. Art Noonan (D-Butte), but that Rep. Noonan didn't have Groesbeck's familiarity with the issue's nuances (Groesbeck was a musician who often performed in licensed establishments.) The committee indicated the matter had a relatively low priority but Staples said he would monitor and pursue the situation as best he could.
Staples told the committee of a bill being introduced to allow the alcohol content in beer to be increased from the current limit of 7 percent to up to 14 percent.
Some members expressed an interest in selling the strong beers, but others warned of the "slippery slope" of continually loosening alcohol controls. They advocated "strong beers" that exceed 16 percent alcohol by volume (which is the current threshold) should continue to be handled as "alcohol" as specified under current law, and moved through state distribution channels.
Those under 16 percent (the proosed law calls for allowing beers to go to 14 percent) could be sold wherever beer is sold.
The committee recommended MTA neither support the bill (so as not to be seen advocating quicker intoxication) nor oppose it. The measure was deemed a low priority for the MTA.
Another similar bill HB297, called for allowing businesses with on-premise beer and wine licenses to sell fortified "strong" wines with alcohol contents as high as 24 percent.
The category would include ports, sherries and vermouths but could also include "cordials" such as schnapps with alcohol contents in that range as well as Irish cremes.
"If we are to continue to be a state that wishes to exercise close control of alcohol beverages, we must do just that," said one member, warning again of the "slippery slope." Numerous attempts to riddle the system with small holes soon constitutes a sieve of a system, he said.
Staples had earlier passed out forms that listed all the bills of concern to the MTA, and asked members to assign numbers indicating a priority status of the bills. He gathered them and compiled results during the break preceding the general board meeting.
Editor's note: Obviously a strategy meeting like that covered above cannot be reported in full and the committee went "off the record" numerous times. For licensees to have complete information, they should contact representatives of their local tavern associations who comprise the committee and the MTA Executive board, or contact the MTA executive offices or Government Affairs Counsel Staples. The above meeting occurred early in the Tavern Times news cycle, so also refer to the more current article on legislative proceedings elsewhere in this edition. Ideally, check the Internet every day for the most up-to-date information including hearings schedules.
Source: The Montana Tavern Times, March 2009, published monthly by Continental Communications, 125 W Granite, Suite 102, Butte MT. 59701