Legislation distilled as transmittal nears
Pub Date: 3/1/2007
The wheat was rapidly being separated from the chaff as the House and Senate of the Montana Legislature reached their February 28 transmittal deadline when all bills, other than appropriations, must be approved and passed to the other body.
Just a couple of weeks into the 2007 Montana Legislative session, the Montana Tavern Association was tracking 90 bills of interest to members including almost 50 that dealt with liquor and gambling issues alone. Some had passed one chamber or the other, but most never made it to the drafting stage and a number of them were tabled in committee or voted down.
At this late-February writing, bills still alive and of most interest to licensees were:
Senate Bill (SB)127 (wineries) and its companion SB524 (breweries), both sponsored by Sen. Dave Wanzenried, (D) Missoula, would allow all licensed wineries and breweries to make limited volume sales and shipments to licensed retailers.
SB127 got an 11-1 do pass recommendation from the Business, Labor and Economic Affairs Committee and was later passed 49-1 by the Senate before being referred to the Senate Finance and Claims Committee where it was approved 18-1. It passed the full Senate February 22 46-4 and was transmitted to the House.
Sen. Wanzenried's SB524 was heard in Senate Business, Labor and Economic Affairs February 21 where it received a 10-1 do-pass recommendation. On February 24 it received a 46-3 approval from the full Senate and was sent to the House.
The pair of bills was meant to bring Montana law into compliance with a May, 2005 U.S. Supreme Court decision that said states cannot discriminate in favor of in-state wineries when it comes to direct sales and shipping to retailers and consumers.
SB140 - Sen. Dan Weinberg, (D) Whitefish, to revise small business health insurance pools, which was referred to Senate Public Health, Welfare and Safety received a 9-0 do-pass from Senate Public Health, Welfare and Safety February 7 and a 49-0 approval by the full Senate before being transmitted to the House February 20.
SB296 - Sen. Dan Weinberg, (D) Whitefish, was introduced Jan. 18 and would revise the restaurant beer and wine licensing law to allow more of the limited license for given quota jurisdictions. It passed the Sen. Business, Labor and Economic Affairs Committee 11-0 January 30, then passed the full Senate 45-5 February 6 and was sent to the House.
SB495 - Sen. Frank Smith, (D) Poplar, would have revised the definition of "beer" from 7 percent alcohol by volume to 4.5 percent. Any beverage containing more than 4.5 percent ABV would be regulated (controlled, taxed and distributed) as though it was liquor. Â The bill had a hearing before Senate Business, Labor and Economic Affairs February 22 but was tabled the same day based on negotiations between the sponsor and opponents, with even Sen. Smith voting against it.
SB 540 - Verdell Jackson, (R) Kalispell, as amended, would allow retail businesses licensed to sell antique, though illegal, gaming devices to possess them for the purpose of resale and not for operation. "Antique" is defined as being more than 25 years old. The bill had a hearing February 22 before Senate Business, Labor and Economic Affairs and received an 8-3 do-pass the same day. Â The bill is an apparent response to the Montana Gambling Control Division seizing illegal roulette wheels, craps tables and punchboards from a Whitefish antiques dealer Jan. 31.
SJ2 - A Senate/House joint resolution, sponsored by Sen. Frank Smith, (D) Poplar, calls for an interim legislative study of DUI laws to report to the 2009 Legislature. It passed the Senate Judiciary Committee 11-1 January 24 and the full Senate 46-4 January 31 and was transmitted to the House.
House Bill (HB)113 - Revenue and Transportation interim Committee, sponsored by Rep. Bill McChesney, (D) Miles City, would strike Montana's residency alcohol statute, in accordance with recent court decisions, for liquor licensees and clarifies the approval process for corporations where no individual owns 10 percent of more of the stock, and for other business entities such as partnerships, limited liability companies and so on.
It got a 14-2 do-pass recommendation from the Business and Labor Committee February 17 and passed the House 68-31 January 22. It was then assigned a hearing before Appropriations February 16 and was voted out of committee 17-1 February 21. It passed the full House 65-34 February 24 and was sent to the Senate.
HB146 - State Tribal Relations Committee, sponsored by Rep. Joey Jane, (D) Arlee, called for giving the Governor authority to negotiate gaming compacts with Montana Indian tribes that would give them total jurisdiction over all gambling on their reservations including who gets licensed, what tax rates would be, what games would be allowed, how many devices could be employed, where and when gaming could occur, what games could be offered and what wagers or prize limits might be, if any.
A fiscal note indicated losses to the state general fund would escalate over the years and could amount to $2.4 million annually by 2011. The bill's constitutionality was also in question as the power to approve gambling is constitutionally vested in the Legislature and the people and may not be abdicated to the Governor. Other legislative changes would also have been required due to conflicts with existing statute.
It had a hearing before House Business and Labor Feb. 12 and was tabled February 16. (See complete report on the hearing on page 10 in this edition.)
HB173 - Rep. Douglas Cordier, (D) Columbia Falls, to require the state to reimburse agency liquor stores for the actual case discounts rather than the 1984 weighted average for case sales. It was heard by House Business and Labor January 18. Its fiscal notes said the bill would cause a net annual loss of $750,000 to the general fund by 2011. It received a 12-4 do-pass from Business and Labor as amended January 23 and a 74-25 approval from the full House January 26. However, after being transferred to House Appropriations, it was tabled February 21.
HB190 - Bill Thomas, (D) Great Falls, would revise the Montana Card Game Act. It clarifies what are social cards games, clarifies "house player," revises dealer licensing processes and posting of game rules, allows for progressive tournaments and for a portion of a tournament prize to be a buy-in fee for a subsequent tournament, restricts total tournament buy-ins to $2,500, requires at least 50 percent of entrance fees for charitable tournaments be returned to the designated charity and stipulates that card tournaments are not allowable during "casino nights."
The bill had its first hearing before the House Business and Labor Committee Jan. 17 and received a 15-1 do-pass January 25. The bill passed the full House 68-31 January 30 and was sent to the Senate where it was assigned to the Judiciary Committee.
HB293 - Rep. Dennis Himmelberger, (R) Billings, to allocate lottery proceeds to teacher's retirement system rather than the state general fund, was referred to the House State Administration Committee where it received an 11-7 do-pass January 26, then a 56-44 approval from the House January 31. It was then referred to House Appropriations.
HB300 - Mike Milburn, (R) Cascade, would stipulate that a statement on a liquor license application or at a hearing that is based upon an assertion made by a governmental officer, employee, or agent that an applicant relied upon in good faith may not be used as the basis for a denial or revocation of a license.
A licensee in Ulm relied on a statement by a county surveyor in 2005 to apply for a county all-beverage license. It was later discovered the survey was inaccurate and the state moved to revoke the license based on a "false statement" contained in the application. The bill received a 13-2 do-pass from Business and Labor February 2 and a 93-7 approval from the full House February 7. It has been sent to the Senate.
HB333 - Rep. Bill McChesney, (D) Miles City, would allow pari-mutuel wagering for match bronc and wild horse races. The bill was referred to House Business and Labor where it was approved 15-1 January 25 and later passed by the full House 77-23 January 31. It advanced to the Senate Business, Labor and Economic Affairs Committee where it garnered an 11-0 do-pass February 14 and 48-2 approval from the Senate February 15. It now awaits the Governor's signature.
HB390 - Rep. Bill Nooney, (R) Missoula, would allow telephone account wagering on internet horse or greyhound racing held in or outside the state with a portion of fees distributed to a licensing board, race meet licensees, a horse owner bonus program and a breeder bonus program. The bill was introduced Jan. 18 and got a 10-6 do-pass from Business and Labor February 1 and 74-26 House approval February 26 before being sent to House Appropriations.
HB502 - Rep. Dave Gallick, (D) Helena, would revise gambling laws to divert .0075 of 1 percent of video gaming machine taxes (about $5,600) to the Board of Horse Racing to enhance the sport. The bill had a February 15 hearing before House Appropriations but no vote had been taken by the Tavern Times'deadline. (Editor's note: We're fairly certain the bill was intended to request .75 of 1 percent and $560,000, but was not written that way and the fiscal note calculations relied on the .0075 percent as it actually appears in the bill.)
HB492 - Rep. Dennis Himmelberger, (R) Billings, would no longer allow excluding tip income from minimum wage calculations (would allow a "tip tax credit" as is done in 44 other states). It would also fix the minimum wage for food service servers at $6.15 an hour. This bill is supported by the Montana Restaurant Association.
It received a 9-7 do-pass from Business and Labor February 14. An attempt to amend it before the full House failed 12-87 February 21 and an attempt to pass it failed on a tie 50-50 vote the same day. Another motion to amend was adopted 52-48 February 23 and it passed second reading as amended 52-47 that day. It passed third reading February 26 on a 51-49 vote and was transmitted to the Senate.
HB508 - Rep. Diane Rice, (R) Harrison, would disallow gratuities or tips from being considered for workers compensation tax calculations, effectively reducing taxes paid but also compensation paid. The bill is backed by the Montana Restaurant Association and had a hearing before Business and Labor February 2 but was tabled one week later. HB616 - Sen. Kim Gillan, (D) Billings, would allow sports fantasy leagues for the benefit of horse racing. It was assigned to Business and Labor and received a 12-4 nod February 16 and 64-35 House approval February 20. It has been sent to the Senate.
HB633 - Rep. Ernie Dutton, (R) Billings, would restrict gambling rights for lottery alcohol licenses in major cities. It would also require lottery applicants to provide proof of a $100,000 line of credit, would restrict lottery applications to one annually, exclude those who already have an all-beverage license from applying and would require a license be in use in a business within one year. The bill has received MTA support and a 14-2 do-pass from House Business and Labor February 15. It was transmitted to the Senate following an 84-16 approval by the full House February 19.
Bills not yet introduced but drafted include:
LC2180 - Rep. Jon Sonju, (R) Kalispell, would provide that tax proceeds from video gambling machines be deposited in a school equalization funding account rather than the general fund. It had yet to be introduced by February 26.
Source: The Montana Tavern Times, March. 2007, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.