2009: licensee reps cautious, optomistic
As the Montana Legislature approached its April 27 adjournment
date, and the Montana Tavern Times passed its April 23 news deadline,
lawmakers were focused on breaking through the biannual budget
showdown.
Other bills pertaining to small business, taverns, gaming and foodservice had been mostly dispensed with.
A bill opposed by the hospitality industry was Sen. Christine
Kaufmann's (D-Helena) SB501 which called for a 5-cent tax on all
servings of alcoholic beverages at on-premise locations.
It was heard in the Senate Taxation Committee March 11 and tabled
March 20. It missed the March 31 tax bill transmittal deadline and died.
Another bill closely followed by licensees, HB211 by Rep.
Jeff Welborn (R-Dillon), would create a voluntary alcohol server
training program that would provide a licensee "responsible server
certification" in exchange for reduced penalties for violations.
The bill had passed the House 88-12 March 18 and passed out of
Senate Business, Labor and Economic Affairs 9-2 March 27. Before the
full Senate, the bill was, at the request of the sponsor and industry,
indefinitely postponed on a 27-23 vote April 1.
According to Mark Staples, Montana Tavern Association government
affairs counsel, the Department of Revenue had agreed to promulgate new
rules to lessen fines and the risk of license suspension or revocation,
in lieu of legislation. The rules should be finished by fall of this
year, Staples said.
He commended Gaming Industry Association Executive Director Neil
Peterson, and Rona Alexander of the Petroleum Marketers Association,
for their efforts.
Another bill that hospitality business owners were following, HB331
by Penny Morgan (R-Billings), would change the way the cost of health
inspections are calculated—higher fees for larger establishments—and
would have put the authority for setting rates in administrative rule
rather than law.
Most business associations opposed it.
It was amended in the House Local Government Committee, received
a 12-6 do-pass Feb. 17, and was passed out of the House 83-17 Feb. 25.
It was then assigned to Senate Business, Labor and Economic Affairs and
had its first hearing March 17. It was tabled in committee March 27,
then taken from the table, then re-tabled April 7.
The bill was "blasted" from the committee to the full Senate on a
30-20 vote April 8 and amended heavily by a 45-5 vote on April 14. The
next day it was passed 28-22 and sent to the House as amended, but the
House rejected the amended measure 86-13 April 18. So it was sent to a
conference committee where members of both chambers try to work out
differences and craft a compromise.
The conference committee heard the newly amended bill April 21
and it was approved 42-7 by the Senate April 22 and 92-5 in the House
the next day.
In essence, after the amendments, inspection fees for restaurants
employing just one or two people will rise from $60 to $85, while fees
for larger restaurants and grocery stores will go from $90 to $115.
Motels and campgrounds would go from $40 up to $160, depending on size.
Food service and licensed businesses said they wanted to keep
the fees set in law to assure legislative oversight, rather than let
them be set in rule by government agencies. They also argued that
inspections are demanded by the public and yield a public benefit so
using some general tax revenues to pay for them is justified.
Health officials said inspection fees paid by businesses cover only
one-third of the costs and wanted businesses to pay for it all. They
expressed disappointment over the outcome even though the measure will
cost businesses an additional $300,000 for inspections annually.
The bill also established a task force to study the issue over the next two years.
MTA's Staples characterized the food inspection measure as "the
bill that wouldn't die." He said the Montana Restaurant Association
took the lead, but the MTA became involved when the bill passed out of
the House and to the Senate without necessary changes. Particularly
objectionable to businesses was leaving the fees to be increased by
some unspecified amount through administrative rule, he said.
SB506 by Sen. Jeff Essmann (R-Billings), would have
allowed local governments to choose to allow voters to levy 4 percent
sales taxes on certain goods and services including lodging, prepared
meals and alcohol by the drink. A fiscal note said the tax would cost
consumers about $100 million a year, but would have provided some
property tax relief.
The bill was heard in Senate Taxation March 24 and narrowly passed
6-5, but failed 13-35 before the full Senate March 28 and thus died
when it missed the deadline to transmit tax measures to the House.
Another measure favored by the MTA was SB402 by Sen. Jim Peterson
(R-Buffalo). It was meant to protect businesses and citizens from the
uncompensated loss of personal property or wealth due to government
actions. It had a hearing before Senate Finance and Claims March 18 and
was endorsed 12-7 as amended.
It was further amended by the Senate and passed 32-18 March 26. It
was transmitted to the House where it died in the Judiciary Committee
on a 9-9 tie April 2. An attempt to blast the bill from the committee
to the floor April 17 failed on another 49-49 deadlock.
HB 598, sponsored by Rep. Pat Noonan (D-Butte),
originally called for exemptions from "independent contractor status"
for all entertainers working—even for just one night—for a business.
The state's Worke's Compensation insurer had taken the position that
entertainers needed to be covered under work comp as an employee of the
business where they performed, or else file as an independent
contractor for a semi-annual fee of $125.
Businesses said that interpretation would simply end live
entertainment now offered in clubs, and entertainers said they would
have no more work.
The bill was heard in House Business and Labor March 11 and got
an 18-0 do-pass recommendation after it was amended to include only
musicians.
It passed the full House 82-11 March 28 and was sent to Senate
Business, Labor and Economic Affairs where it was approved 10-1 April 7
with another amendment specifying there has to be a "written contract"
between the businesses and the musicians for the exemption to apply.
The full Senate passed the bill 49-1 April 16 and it was sent
back to the House with the amendments. The House passed it as amended
92-8 April 21. It now awaits the governor's signature.
HB195, introduced by Rep. Robin Hamilton (D-Missoula), would
clean up the restaurant beer and wine license language, and would
eliminate the "preference" for some applicants who had applied
previously. It passed the House and was transmitted to the Senate Jan.
22 where it was assigned to Business, Labor and Economic Affairs.
The committee conducted its first hearing March 4 and after
amendments voted its support 11-0 on March 19. The full Senate approved
the bill 48-2 March 23 when it was returned to the House to consider
the amended version. The House passed it 93-1 March 28 and it was
signed by the Governor April 9. The Montana Tavern Association
supported the bill.
A tricky bill to clarify laws related to liquor license security interests, Rep. Walter McNutt's (R-Sidney
) HB94,
passed both chambers and was signed by the Governor March 25. MTA's
Staples said the bill "should have no effect on license transfer
agreements or financings."
HB400 would allow beer alcohol content levels to be
raised from the current 7 percent by volume to 14 percent. MTA did not
oppose the bill. It is sponsored by Deb Kottel (D-Great Falls). It was
passed by the House and Senate and the Governor signed it April 9.
SB86, a gambling "clean-up" bill requested by the Gaming
Advisory Council and the Department of Justice, and carried by Sen. Joe
Tropila (D-Great Falls), passed the Senate 46-2 Jan. 21 and was
referred to House Business and Labor where it passed 18-0 March 24. The
full House passed the measure 98-2 April 7. It was transmitted to the
Governor April 14 where it awaits his signature.
SB398 by Ryan Zinke (R-Whitefish), introduced Feb. 7,
would have capped the amount employers would pay in workers
compensation and unemployment insurance for tipped workers at double
the minimum wage. Press reports indicated the Montana Restaurant
Association had agreed to support the bill in lieu of bringing any
other minimum wage or tip credit legislation until at least the 2015
session.
The full Senate passed it Feb. 25 on a 39-11 vote. It was then sent
to the House and assigned to Business and Labor where it had its first
committee vote and was approved 13-5. Then proponents asked to have the
measure dropped. Staples said, "It was concluded it didn't really
accomplish the hoped for relief for restaurants or licensees."
LC2201 by Sen. Sharon Stewart-Peregoy (D-Crow Agency)
would have allowed the Department of Justice to enter into gaming
compact negotiations with tribes, and would allow tribes to run any
Class III gaming. A bill draft was delivered to the sponsor Jan. 29 but
was cancelled shortly after.
Sen. Kaufmann's LC1309 to increase video gambling taxes never materialized.
When asked for a comment on how he felt MTA had done, overall, in the
2009 session, Staples said, "There's still a week or so to go (at press
time), and to quote Kenny Rogers, 'You never count your money while
sittin' at the table. There'll be time enough for counting when the
dealing's done.’"
Source: The Montana Tavern Times, May 2009, published monthly by Continental Communications, 125 W Granite, Suite 102, Butte MT. 59701