2005 Taverns survived sessions intact
Pub Date: 1/1/2006
How will the year 2005 be remembered by owners of Montana's licensed businesses?
That would certainly depend on the individual's perspective. But most would agree the meeting of the Legislature was the driving force behind the year's news and developments.
While the lawmaking body resisted calls for increased taxes on liquor and gaming, it did enact keg registration and open container laws, neither of which have any real effect on retailers, and increased some penalties for DUI. Licensees were unopposed to these measures.
The main drama centered on the grapple over smoking restrictions in businesses and that played out over the course of the whole year and is playing out yet.
Let's take a month-by-month look in our collective rear-view mirrors.
January
The Montana Tavern Association was busy scoping legislation coming over the horizon while past MTA president Harry Klock took his newly acquired seat in the House of Representatives.
A consortium of gaming and liquor businesses and their associations, through the Montana Gaming Research and Education Fund () and the Montana Gaming Group (), launched two important industry web sites covering help for problem gamblers and providing information about legal gaming and the businesses that provide it.
A contract the state had with an Alabama publisher to produce It's liquor price book fell apart and the state announced it would put the contract out on bids.
The Tavern Times reported gaming win-ticket fraud was on the rise, machine manufacturer Spielo launched a new game platform with poker and keno combined and Big Sky Brewing in Missoula moved into their new plant.
February
The MTA was monitoring 85 legislative bills of interest to licensees including tax bills that would hike rates anywhere from 100 percent to 1,300 percent, even with a fat surplus in hand. One gaming tax increase bill attempted to split operators by levying even heavier taxes on businesses with more machines, but licensees stuck together and the bill got no traction.
Other liquor tax hike bills also died for lack of support.
One bill attempted to better codify and define the state's relationship with Indian tribes regarding gaming compacts, but it was attacked by gaming foes as expansionist and died.
Another bill, which ultimately passed, straightened out abuses to the licensing system, where speculators purchase cheap county licenses, park them next to the city limits, then anticipate a windfall in increased valuation if annexation brings their license into city limits.
Newly elected Gov. Brian Schweitzer announced the appointment of Dan Bucks as director of the revenue department. Meanwhile, the Montana Supreme Court ruled that a smoking ban with exemptions for gaming licensees passed in the 2003 sessions was constitutional but ineffectual, essentially nullifying the law.
March
A bill exempting businesses licensed for alcohol or gaming from smoking bans passed the House and was sent to the Senate. A ban bills without exemptions had been tabled in a House committee.
A number of bills introduced at the behest of the Gambling Control Division and approved of by the Gaming Advisory Council had been introduced and passed, chief among them a measure to restructure 2001 legislation authorizing automated accounting and reporting for the state's gaming machines. The new approach sought to implement an internet based system.
April
A carefully crafted compromise smoking bill, which was derived from the tabled ban bill, called for banning smoking in all indoor workplaces with the exception of licensees, who would be excepted until Oct. 2009. That bill eventually passed and was signed by the governor.
The moderate majority successfully beat back additional 11th hour attempts to hang new taxes on businesses licensed for gaming. A bill by Rep. Christine Kaufman (D-Helena) would have imposed variable gaming tax rates from 15-30 percent linked to a business' revenues. Another that would have tacked a 4 percent sales tax onto prepared meals also expired.
Three state Indian tribes announced plans to expand gaming on their reservations the Northern Cheyenne, the Confederated Salish and Kootenai Tribes and the Blackfeet.
May
The Tavern Times, in its May issue, reported that HB643 the compromise smoking bill had been signed by the governor, and that Gambling Control did get the appropriation needed to begin work on an internet based gaming machine reporting system.
Freshman Rep. Harry Klock (R-Harlowton), described his legislative experiences as "profound" in an interview, and within hours of the session's adjournment, was headed back to work at the Stockmen's Bar.
The state announced it had selected a Montana company to publish the liquor price book, while the Tavern Times noted the passing of veteran licensees Jerry Belisle and Marlene Bosch.
The Rocky Boys Indian Reservation inked a deal with the Miami Tribe of Oklahoma to install so called Class II video "bingo" machines that play like slots and can pay out in over six figures. They also announced plans to study the feasibility of building a new gaming facility.
The Tavern Times reported that in the wake of a $1 per pack tax increase, tobacco tax collections had actually fallen as consumers found alternative sources of low- or no-tax tobacco.
Montana gaming machine manufacturers Fleetwood and Summit had conducted very
successful Open Houses in their Billings hometown.
June
A long awaited district court decision found that Montana's law restricting liquor licenses and, hence, gaming licenses to residents only was unconstitutional and that residents in other states and countries, presumably, could own licenses.
Some speculated the ruling could fundamentally change the nature of the business with establishments owned by anonymous individuals and corporations who did not participate in their communities or business associations. Others felt opening up the market for licenses could enhance their value. The tavern association has historically been split on the issue.
The MTA board met and a good deal of the discussion was devoted to gaining a thorough understanding of the implications of the newly passed smoking prohibitions that exempted licensed premises until Oct. of 2009.
MTA attorney/lobbyist Mark Staples urged MTA directors to see the result of the entire session which were, for the most part, positive for taverns.
The Gaming Industry Association of Montana conducted its convention at Fairmont Hot Springs and delved into legislative session results affecting gaming, with Executive Director Rich Miller warning that rules implementing new laws would require careful scrutiny.
The group carefully weighed a package of legislative changes that allowed gaming machine developers more latitude in enhancing entertainment value through such devices as bonus games. The new approach to gaming machine reporting was also analyzed.
Marc Wass was elected the group's new president and immediate past president, Steve Arntzen, characterized the 2005 legislative session as "tremendously successful."
The gaming advisory Council met and considered rules to implement new legislation, but also began discussion of rules modifications and legislation that may be required to modernize and better regulate live poker, which was enjoying a healthy boom in the state, as it is nationally.
It was reported international Game Technologies' (IGT) new dual game chip sets won Gambling Control approval.
A U.S. Supreme Court decision found states could not discriminate against in-state and out-of-state producers of beer, wine or spirits when it come to shipping practices. Some states had allowed in-state wineries to ship direct to consumers and retailers, bypassing wholesalers, while prohibiting out-of-state producers the same privilege.
The court did reaffirm a state's right to regulate the importation, manufacture, distribution, retailing and consumption of adult beverages as long as a state's practices were not discriminatory.
July
Atty. Gen, Mike McGrath announced the state would not appeal the recent district court decision declaring unconstitutional Montana's prohibition on out-of-state ownership of liquor and gaming licenses.
Counterfeit gaming win-tickets were again reported to have surfaced around the state and operators were being advised to implement better security measures.
It was reported that Young's Market had bought out Alliance Spirits and Wine, the state's largest liquor representative firm.
August
The Tavern Times noted that convention plans were well firmed up for the Sept. 19-22 event in Helena. The paper also featured a story on the resurgence of live poker that is taking place.
The city of Great Falls, with the participation of local tavern concerns, implemented carefully crafted new zoning and sign ordinances.
The Cascade County Tavern Association spearheaded a community campaign to raise money to finance efforts to enhance community development, but namely to maintain the military presence at Malmstrom Air Force Base. The group reported an astonishing $38,000 was raised.
September
A good deal of the 40 pages of the Montana Tavern Times was dedicated to detailing all the meetings, panel discussions, trade show exhibits, golf competitions and parties that characterize a tavern association convention. The MTA would be conducting its 50th state-wide rally.
Jupe Compton of Havre and Dennis White of Helena were squared off for the association presidential election.
In an "internet sting," The Tavern Times proved in a page-one report that anyone of any age can order any kind of beverage alcohol over the internet and have it left on your doorstep, with only a credit card required.
An early draft of rules to implement the smoking ban law was sent by the Department of Public Health and Human Services to the Secretary of State for review. MTA's Staples' initial judgment was that the rules seemed to reflect the intent of the Legislature and the law.
Led by Montana Sen. Max Baucus, Congress finally repealed the archaic Special Occupational Tax paid by all alcohol businesses $250 for retailers. It would save Montana businesses alone about $625,000 a year.
The Gambling Control Division released a discussion paper outlining the need to revise live poker rules to improve the games but also to better regulate them and the people who deal the cards.
State alcohol related traffic deaths continued their decline, down 2 percent from the previous year, 11 percent in the previous decade and 54 percent since 1982.
Brett Wiensch was tapped to head the Young's Market Montana operations, as Del Rupert moved to Barton Brands. Rod Lincoln sold his famed Rock Creek Lodge the home of the "Testicle Festival" and everyone's favorite pseudo curmudgeon, Dana Latsch, announced the sale of Livingston's funky Owl Lounge.
October
Darrell Keck was named the recipient of the 2005 Durkee award at the just concluded MTA annual convention, while Jupe Compton was elected MTA president. Roger Frampton won the MTA poker tournament taking home $2,200 and Paul Geis won the $15,000 top prize in the big raffle. The smoking law and rules remained the number one legislative topic.
The Gambling Control Division, at a meeting of the Gaming Advisory Council, noted new rules have become necessary to curb misuse of credit cards to obtain cash advances for gambling, and the proposed rules were thoroughly vetted at the meeting.
At a GIA board meeting, Rich Miller told members that gaming tax revenues were up a healthy 6.6 percent for the year, but down from the 8.5 percent growth of the previous year. Tax collections were $53.4 million versus $50.1 million in FY 2004.
Miller also told directors that Al Arvish, the state's contractor developing the internet based automated reporting for gaming establishments, was making real headway.
November
In an interview with Arvish, the Times' readers learned he was contemplating a tiered system to categorize operators by size and sophistication to make a gaming machine data reporting system adaptable to the business realities.
He said he hoped a system is ready by late 2006 or early 2007.
News of a Washington, D.C., woman being arrested and charged with DUI after consuming a single glass of wine with dinner prompted much editorializing on good ideas carried far too far.
The Times also attended a hearing on the smoking rules and reported it was done efficiently and dominated by the moderates who crafted the compromise legislation, with the extremists patiently heard out.
Town Pumps announced the company hoped to raise $450,000 for food banks across the state with its "Be a Friend In Deed, Helping Those In Need" program.
Finally, the Times acknowledged its 10th anniversary and enjoyed congratulatory messages purchased and published throughout its pages by the paper's many supporters.
December
The MTA directors met and once again considered the latest smoking rules which had been published with a few relatively minor alterations to the draft. MTA's Staples said the law was concise "and spoke for itself" and that the final rules iteration did the law justice.
Sandi Jones, chairing the MTA poker subcommittee, said her group and counterparts at GIA and GCD had developed a consensus on where rules needed to go. Temporary dealer licenses would still be available but requirements to then secure the permanent license would be stricter.
Further, Jones said tournament formats could be revised to make them function more like the versions seen on TV, while pot limits should be set at $800 to bring them into uniformity with poker machine pot limits.
MTA directors reaffirmed their position that the three-tier system and close regulation is desired by licensees, and they expected licensees to follow the law.
That meant any rogue retailers purchasing alcohol products outside the regulatory scheme for resale, or unlicensed restaurant owners who encouraged patrons to consume, for profit, adult beverages on their premises, should feel the force of law. Some abuses of brewery sample room regulations were also to be addressed.
The MTA's PR committee, which provides representation to the Gaming Research and Education Fund, reported the fund directors were contemplating a change of direction, putting its resources to work in helping licensed businesses adapt to the changing marketplace under the new smoking law. MTA directors endorsed the change.
And with that, a pretty good year for tavern businesses came to a conclusion.
Source: The Montana Tavern Times, Jan., 2006, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.