Ravalli TA hosts Q&A with regulators
There are several local tavern associations that stand out among the rest.
Surely one of those is the Ravalli County TA, known statewide for their ground breaking designated driver program, first-rate political forums during election season, their fundraiser dinner and subsequent charitable contributions and scholarships, their regular responsible server training classes and their excellent community and government relations.
A lot of the credit goes to Cal and Merlynn McOmber of the Corvallis Tavern, and Tex and Heidi Irwin of the West Fork Lodge, but even more collective credit is due to the representatives of member bars who show up for meetings all year long.
Raising money and giving it to worthy causes will help build good public and community relations, but as important is the operation of responsible businesses, whether that means working toward eliminating access to alcohol by minors, or striving to end over-serving of patrons. The Ravalli TA his working hard on all fronts.
Knowledge is power, and fully informed business owners run better, more responsible, and more profitable businesses. So recently the Ravalli TA organized an informational meeting with representatives of the state liquor and gambling regulatory authorities.
Meeting with Ravalli licensees Dec. 1 at the Eagles Lodge in Hamilton were: Rocky Harris and Jim Theisen, investigators out of the Gambling Control Division's Missoula office, and Jason Lay and Tanya Stelzer, compliance specialists from the Liquor Division. Mark Staples, the Montana Tavern Association government affairs counsel, joined the panel and served as a de facto moderator.
Ravalli TA President Tex Irwin of the West Fork Lodge said much of the credit for the forum belongs to spark plug McOmber, but that there was a collective desire to bring regulators and operators together for a discussion of issues and problems faced by both.
Irwin said he was highly pleased with the turnout of 20-25 licensees, noting a number of them weren't even dues-paying members of the local association. He said he was equally pleased with the responsiveness of liquor and gaming agencies in sending their enforcement personnel for the communications exercise.
Staples opened the discussion by noting that licensee business associations have "superb" working relationships with both the Department of Justice, which oversees the operation of the Gambling Control Division, and the Department of Revenue, which incorporates the Liquor Division. "The relationship is arm's length," Staples said, "but has always been respectful and honorable."
Gambling investigators Theisen and Harris came prepared with handouts that covered the legal aspects of "sports boards," which they said generate a regular stream of questions for regulators, and the occasional violation for licensees.
The Liquor Control compliance officers also had a handout that covered the agency organization, licensing criteria and procedures, license types and fees and much more.
One licensee in the audience noted there is some confusion about the overlapping jurisdictions of the revenue and justice departments, so Theisen explained that revenue contracts with justice, specifically Gambling Control, to conduct investigations related to license applications and amendments as well as for gaming and liquor violations.
He said violations could be of the civil variety which are handled with administrative proceedings that can result in fines or license sanctions, or criminal, which are turned over to local prosecutors. He also noted a criminal prosecution can occur simultaneous to civil proceedings.
McOmber asked about sports board prizes that were a combination of merchandise and cash, and if the two had to be of equal value. He was told the overriding issue was that the equivalent of all wagers must be in turn paid out to winners.
The gambling investigators then fielded a question regarding the parameters for running charity "casino nights," to which Harris responded that casino night licenses can be obtained from the Division, and that only games currently allowable under Montana statute may be offered. Upon further questioning, he said there is no "take-out" allowed from wagers for covering "overhead or administration."
Several questions were posed regarding live poker games and tournaments. Staples offered some background on 2007 changes to the poker statute for tournaments, noting discussions on increasing pot limits from $300 to $800 had at the time gone nowhere.
In terms of maximum tournament payouts, Theisen said there is none since payouts depend on the number of players entered, the buy-in rate, total number of hands played and so on.
Another audience question dealt with licenses placed on inactive status, especially a license that may have been foreclosed upon. Revenue's Lay reminded the audience that it usually takes a tip or question from a citizen to prompt an inquiry which may or may not lead to an investigation.
Stelzer, also of the revenue department, said a license can be put on inactive status for 180 days, and that a 180-day extension could be sought for due cause.
There were other questions on:
• Gaming tax losses for the state due to the smoking ban: hopefully it is made up through spending cuts rather than tax increases, Staples said.
• Specific dice games that are allowed for shaking for music or drinks: no particular game is specified, but for shake-a-day only "one-flop" is allowed.
• Questionable usage of catering licenses in certain circumstances: a beer and wine caterer serving mixed drinks would be illegal and could be prosecuted if a complaint is signed.
• A fee for an "event" is charged, but alcohol is said to be given away free: If alcohol is part of the event package and a fee is charged, alcohol is in fact being "sold" and a license is required.
• "Bottle clubs" are operating: Any business that allows alcohol to be consumed on premise, especially if they charge a "corkage" fee or charge for amenities, is operating illegally and subject to prosecution, not to mention substantial uninsured liabilities.
• Brewery "sample rooms" don't seem to be subject to the same scrutiny as other on-premise operations: signed complaints and verifiable violations will be subject to administrative or criminal proceedings and ought to be subject to the same level of enforcement, including "stings."
"We were grateful to get some answers to our questions," Irwin said. "We also got a better feel for how the agencies operate, the role of the Legislature .... We came away with some useful knowledge, a better understanding of the codes. It improved our relationship with the regulators and I think their relationship with us.
"I would hope other local tavern associations would try these forums," Irwin said. "It takes effort and dedication but it improves communications." The obvious benefit – improved knowledge – is also a "pretty good membership recruitment tool," he said.
Irwin said it was typically generous of the Hamilton Eagles club to step up and offer its meeting room facilities for free. To, boot, participants were given a free drink token at the conclusion of the meeting – a total winner all the way around.
Incidentally, before the meeting, Heidi Irwin told the Tavern Times the Ravalli TA's designated driver program continues to work well. The program offers rewards for people who sign up as a designated driver at member establishments. Her records indicate 501 people registered as designated drivers Jan. 1-Oct. 30, 2009, and have driven 1,442 patrons. Those who register can win a cash prize in a monthly drawing, then are eligible for an annual grand prize drawing of $1,000.