Legislature moving forward on liquor, gaming bills
Pub Date: 2/1/2007
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. The balance had to do with general taxation, minimum wage, insurance, workers compensation and employment law.
Among licensees' chief concerns is that the integrity of the liquor license quota system be preserved since social pressures are mounting for stricter control of access to alcohol, and to assure that license asset values aren't depreciated.
Montana implemented its quota system decades ago to allocate alcohol licenses based on population of given jurisdictions as well as "necessity and convenience" in response to licenses willy nilly having been issued, after Prohibition ended, to every and any establishment that would ante up a small fee. At the time, liquor was available virtually in any commercial enterprise, even those frequented by youth and families.
Many licensees who purchased their licenses years or decades ago say they have made substantial investments in money and work in building their businesses and industry which in turn has rightly lent to the appreciation of the license value.
Others have more recently bought into the state's system at current market prices which may reflect the usual amount of inflation-driven appreciation plus some premium due to burgeoning demand in some of Montana's hottest local economies, where real estate and other property has also seen value increases in some multiples.
At this mid-January writing, there were bills drafts available to view for:
SB144 - Sen. Jim Shockley, (R) Victor, calls for the impoundment of the license plates of a person convicted of second-offense DUI. The bill would allow previously impounded vehicles to be licensed and used if a special five-year plate bearing the letters "DUI" and numerals is procured and displayed.
A fiscal note indicates the law would generate a net gain for the general fund of about $110,000 per year. The bill had its first reading Jan. 3 but no hearing has been scheduled as of Tavern Times deadlines.
An almost identical bill SB263 sponsored by Sen. Greg Lind, has been assigned to the Senate Judiciary Committee and a fiscal note requested. No hearing date has been set.
SB217 - Revenue and Transportation interim Committee, sponsored by Sen. Dave Wanzenried, (D) Missoula, would allow all licensed wineries to make limited sales to licensed retailers. It had its first hearing Jan. 17 before the Business, Labor and Economic Affairs Committee.
A fiscal note says the bill requires two more employees to administer licensing and tax collection with a net cost of near $130,000 a year to the general fund.
SB296 - Sen. Dan Weinberg, (D) Whitefish, was introduced Jan. 18 and would revise the restaurant beer and wine licensing law to allow additional licenses in some jurisdictions. A fiscal note has been requested.
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 was assigned to the Senate Judiciary Committee Jan. 5. No hearing has been scheduled and no fiscal noted requested.
HB 54 - Requested by the Law and Justice interim Committee, sponsored by Rep. Sue Dickinson, (D) Great Falls, calls for the state to fund, and the Department of Justice to administer, a responsible gambling awareness campaign.
The fiscal note said the law would cost the state $28,500 annually. It had It's first hearing before the House Judiciary Committee Jan. 11.
HB84 - Revenue and Transportation interim Committee, sponsored by Rep. Dave McAlpin, (D) Missoula, would clarify that all courts, including justice and city courts, could exercise jurisdiction for sales of alcohol to minors infractions. There is no fiscal note.
The bill had its first hearing Jan. 12 before the House Judiciary Committee.
HB113 - Revenue and Transportation interim Committee, sponsored by Rep. Bill McChesney, (D) Miles City, would strike Montana's residency requirements, 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 had its first hearing Jan. 12 and got a 14-2 do-pass recommendation Jan. 17.
A fiscal note says the Department of Revenue (DOR) will incur expenses for another employee, and additional travel and computer upgrades to process out-of-state applicants with a cost of about $55,000 annually.
The Justice Department Gambling Control Division, which investigates applicants on behalf of DOR, will require two new employees and other expenses amounting to $125,000. Apparently, the departments' costs will come out of "other proprietary funds" so the net cost of $180,000 will have no impact on the general fund.
HB146 - State Tribal Relations Committee, sponsored by Rep. Joey Jane, (D) Arlee, calls for giving Montana tribes 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 wager 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 is also in question as the power to regulate gambling is constitutionally vested in the Legislature and may not be abdicated to the Governor. Other legislative changes would also be required due to conflicts with existing statute.
HB190 - Bill Thomas, (D) Great Falls, would revise the Montana card game act, had its first hearing before the House Business and Labor Committee Jan. 17.
It clarifies what are social card 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."
HB293 - Rep. Dennis Himmelberger, to allocate lottery proceeds to teacher's retirement system rather than the state general fund, was referred to the House State Administration Committee Jan. 17. A fiscal note was requested Jan. 11 but had not been published.
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 and a fiscal note requested Jan. 16.
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 but not yet assigned to committee. A fiscal note was also requested.
Some bills have been drafted but not yet assigned numbers or introduced, including:
LC0855 - Rep. Michael Lange, (R) Billings) to increase license suspension periods (to one year from six months), fines, penalties and fees, and requiring ignition interlock devices, for refusing to take alcohol tests. The bill draft was ready Jan. 18.
LC1111 - Rep. Robyn Driscoll, (D) Billings, to reduce second DUI conviction penalty from forfeiture to impoundment of a vehicle, but with third offense, the vehicle being subject to forfeiture or ignition interlock device. The draft was delivered Jan. 9 but had not been assigned or introduced.
LC1363 - Rep. Dave Gallick, (D) Helena, would revise gambling laws to divert .75 of 1 percent of video gaming machine taxes (about $420,00) to the Board of Horse Racing to enhance the sport. There has been no fiscal note prepared, bill number assigned or hearing scheduled.
Bills with "placeholders" whose drafts have been put on hold include:
LC0098 - Sen. Greg Lind, (D) Missoula, would revise liquor license statutes, has been on hold since Nov. 1.
LC0099 - Sen. Greg Lind, (D) Missoula, would revise liquor license allocation laws, has been on hold since Nov. 1.
LC0349 - Sen. Don Ryan, (D) Great Falls, calls for an entrepreneur specialty beverage license, has been on hold since Oct. 10.
LC0564 - Sen. Jesse Laslovich, (D) Anaconda), which would revise minor in possession laws, has been on hold since Nov. 17.
LC0565 - Sen. Jesse Laslovich, (D) Anaconda), which would revise driving under the influence laws, on hold since Nov. 28
LC0629 - Sen. John Brueggeman, (R) Polson, which would revise the beer tax, on hold since Dec. 1.
LC0634 - Sen. Kim Gillan, (D) Billings, would allow sports fantasy leagues for the benefit of horse racing. The draft has been on hold since Dec. 22.
LC0878 - Rep. Mary Caferro, (D) Helena, would tax gaming route operators and, hence, location operators and players to fund health care. The draft has been on hold since Nov. 16.
LC1644 - Rep. Ernie Dutton, (R) Billings, would restrict gambling rights for beer and wine licenses, on hold since Dec. 12.
LC1646 - Rep. Ernie Dutton, (R) Billings, would split the gambling license from existing beer and wine licenses, on hold since Dec. 12.
LC1703 - Rep. Tom McGillvray, (R) Billings, would revise internet sales of alcohol, on hold since Dec. 12.
LC1984 - Rep. Sue Dickenson, (D) Great Falls, increase license suspension for refusing blood alcohol test, on hold since Dec. 12.
Some other bills of interest to licensees that are in the drafting process but for which no draft is yet available, and which have "place holders" and "short titles" are:
LC0045 - Sen. Carol Williams, (D) Missoula, would authorize direct distribution of wine, but was listed as "still in drafting process."
LC1780 - Rep. Carol Lambert, (R) Broadus, would impose a new fee for DUI conviction.
LC1976 - Rep. Christine Kaufmann, (D) Helena, is a tax on video gambling to support health care.
LC2180 - Rep. Jon Sonju, (R) Kalispell, would revise use of gambling revenue. A bill draft had been sent to the requester Jan. 12 but not yet introduced.
Bills that have had draft requests but for which there is not yet a draft in process include:
LC2416 - Rep. Sue Dickenson, (D) Great Falls, to study problem gambling. The request was received Jan. 15.
LC2473 - Sen. Bill Tash, (R) Dillon, to revise alcohol laws relating to minors.
LC2481 - Sen. Gregory D. Barkus, (R) Kalispell, revise liquor license laws.
LC2493 - Rep. Diane Rice, (R) Harrison, revise liquor licensing laws.
LC2495 - Sen. Christine Kaufmann, (D) Helena, revise alcohol taxation.
LC2502 - Rep. John Parker, (D) Great Falls, revise DUI laws.
Bill or bill drafts that have, or probably, died are:
LC0396 - Would have made minor revisions to bingo card formats but "died in process" Dec. 26, due apparently to a lack of sponsorship.
LC0398 - Requested by the Law and Justice interim Committee, would have removed appropriation of bond proceeds to Gambling Control Division. The draft was cancelled and the bill is probably dead.
LC0728 - Rep. Mike Phillips, (D) Bozeman, would raise beer taxes about 3 percent to pay for a fetal alcohol syndrome treatment and prevention program. The bill draft was cancelled and it is probably dead.
Other miscellaneous bills of interest to small business owners are:
SB140 - Sen. Dan Weinberg, (D) Whitefish, to revise small business health pools, which was referred to Senate Public Health, Welfare and Safety and will have its first hearing Jan. 26. It had a related fiscal note printed Jan. 16.
HB147 - Rep. Mike Jopek, (D) Whitefish, to revise and clarify application of bed tax and sales and use tax. It is before House Taxation and has a hearing scheduled for Jan. 23. It's fiscal note says it will raise $329,000 for the general fund by extending taxation to intermediaries such as on-line reservation services.
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 to be heard before House Business and Labor Jan. 18. Its fiscal notes said the bill would cause a net annual loss of $750,000 to the general fund by 2011. Another worker would be hired to administer the discounts.
Source: The Montana Tavern Times, Feb., 2007, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.