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MTA Board told convention earned $30,000

Pub Date: 12/1/2007
MTA President Dennis WhiteNewly elected Montana Tavern Association President Dennis White gaveled to order his first meeting of the organization's executive board Nov. 8 at Jorgenson's banquet room in Helena.

"It is my goal to try to be as good a president as (my predecessor) Jupe Compton," White said. "I'm looking forward to this (term of service to MTA); I've been left with a good, strong organization, especially in our lobbying and executive offices."

He told the board he'd be at the MTA offices every Tuesday at 1 p.m. and would stay "until the business is done."

He then called upon Budget and Membership Committee Chairman Mary Jane Heisler to give her report. She said 2007 convention income and expenses had nearly been completely tabulated and it appeared the affair wound up a little over $30,000 in the black. She said 289 members had registered and 67 trade show booths were booked.

She said 828 $100 tickets had been sold for the MTA "Dinner/No Dinner" raffle, which gives away $50,000 in cash prizes, netting the group $32,800 to fund its various charitable and operating outlays.

She told the board MTA had 38 new members but that 76 former members had failed to renew memberships. The rolls reflect 745 regular members, 181 "Gold Star," 45 associate members and three corporate sponsors.

The board voted, on the committee's recommendation, to increase MTA Government Affairs Counsel and Lobbyist Mark Staple's compensation by $1,000 per month, in light of his increasingly wide areas of operation and growing associated expenses.

MTA Executive Director Diana Koon was called upon to give the report of the Public Relations Committee as appointment of a new chairman is pending. Sue Foster, previous chairman, has sold her license and gotten out of the business so has resigned that position. President White lauded Foster's many contributions to the MTA in numerous capacities over the years.

Koon said the MTA had been approached by the Montana Meth Project to contribute to its funding. She said the PR committee had agreed meth is a terrible scourge and the work of the Meth Project highly effective, so recommended MTA, along with local affiliate chapters, set a goal of raising $15,000.

Koon pointed out that if the group acted quickly enough, the contributions would be matched dollar-for-dollar by the project's original benefactor, businessman and Montana rancher Thomas Siebel.

PR Committee members Sandy Jones and Kent Frampton both said they thought Meth was affecting everyone in the state including licensed businesses, that the Meth Project has been proven effective, that it deserved support and that good public relations benefits would accrue to tavern businesses demonstrating substantial support.

One member, while acknowledging the worth of the Meth Project, suggested MTA conserve and use its funds to primarily conduct the operations of a business association working to better the lot of its membership. Instead, he suggested funding objectives be taken up exclusively with local affiliates.

After more discussion, a compromise of sorts was fashioned: MTA was authorized to furnish up to–but no more than–$5,000 toward achieving a goal of $15,000, and that local affiliates would be contacted and asked to pledge in concert toward or beyond the goal.

Representatives of local chapters in attendance quickly said they would put requests in to the local groups in the amount: Tri-County (Lewis and Clark, Broadwater and Jefferson) - $2,500; Cascade - $2,500; Toole - $500; Gallatin - $500; Butte-Silver Bow - $500-$1,000; Hi-Line - $500; Sheridan-Roosevelt-Daniels (SRD) - $300; Missoula - $2,000; Flathead - $1,000; Rosebud-Treasure - $100; South West Montana Tavern Association (Beaverhead-Madison) - $250; Lincoln - $100 and Ravalli - $500-$1,000.

Koon also reported the Montana Department of Public Health and Human Services (DPHHS) had asked if MTA would support use of cocktail napkins in member establishments provided by beverage distributors to promote low cost or free PAP and mammogram tests for women with limited incomes and insurance, a new program being contemplated by DPHHS. Koon said the PR Committee was recommending MTA support the cause.

Again, the board agreed there was potentially good public relations benefits, as well as real benefits for disadvantaged women, with little if any associated cost, so instructed Koon to give an affirmative response to the department.

MTA Legislative and Gambling Committee Chairman Pat Kelly was then called upon to give the committee report. He, in turn, called upon Staples to deliver the report (see a detailed account on the committee meeting beginning on page one in this issue.)

Staples started told the board the committee had discussed Indian Gaming and, in particular, the National Indian Gaming Commission's (NIGC) recent action to once again recommend rules that would declare the slot-like "bingo" games such as Rocket Bingo were Class III instead of "traditional" Class II games. Class II gaming requires no state compact for tribes to operate.

Staples said a similar proposal had earlier run into heavy opposition and likely would again.

Staples told the board a Gaming Advisory Council (GAC) committee is examining the issue of the extent of local government powers to regulate the number of machines or the types of games offered in licensed establishments through the use of zoning authority.

He noted MTA's Steve Morris is chairing the committee on which also sits Kalispell Mayor Pam Kennedy and Garfield County Attorney Nick Murnion. He said MTA would work with the committee and monitor it's deliberations, weighing in when and where appropriate. The GAC offers the Gambling Control Division and Legislature carefully considered guidance.

Staples said it appears the election cycle has started earlier than ever and that candidates are well into soliciting money and even campaigning. He advised the board that MTA, therefore, needs to begin its vigilance and political relationship building earlier than ever, too.

He gave the board a reprise of the morning's committee deliberations, where he outlined a silhouette of the political landscape, noting Democratic Gov. Brian Schweitzer is seeking re-election and has been challenged, so far, by Sen. Roy Brown, (R-Billings).

He said there are five qualified candidates–three Democrats and two Republicans–running for Attorney General, an office that has a substantial effect on the business environment.

Staples advised members to begin meeting with, and getting to know, these candidates while sharing the business perspective (outlined in the October post-MTA convention issue of the Montana Tavern Times).

Darrell Keck, an MTA delegate to the national American Beverage Licensees (ABL) business association, said the group is once again operating in the black after dealing with some financial setbacks.

The ABL's top priority, Keck said, remains dealing with proposals to initiate mandatory universal ignition interlock devices that, set low enough, could prevent any vehicle from being started if its driver had any trace of alcohol in his system, effectively ending the on-premise business.

As an example of the advancing technology, he cited South Dakota's investment in ankle bracelets for criminals that detect any amount of alcohol in the wearer's system and automatically alerts authorities.

He said ABL is working with its counterparts in the spirits, beer, wine and distributor tiers to build coalitions that can effectively deal with threats to the vitality of the adult beverage business, including the Distilled Spirits Council of the U.S. (DISCUS), which has a series of disagreements in the past with the retail tier.

Keck also said ABL is working closely with the Merchant Payments Coalition, a group formed to jointly oppose abusive rates and fees being levied by some credit card companies.

Keck said the ABL will conduct its national convention at the Monte Carlo Resort and Casino in Las Vegas February 24-26, simultaneous with the Night Club and Bar trade show.

MTA ought to also consider joining with ABL and other state associations to collaborate in an ID theft protection system, Keck suggested, since ID theft has become a very large criminal enterprise and costs businesses $millions. He said such a group could return 75 percent of earnings to the state affiliates and 25 percent to the national organization.

Keck said, if it was the wish of MTA, he would invite the ABL Board of Directors to conduct its fall meeting in Great Falls when the MTA convention is held there Sept. 8-11, 2008. Keck reported the board members enjoyed greatly their meeting in Montana in Billings in 2005. It was decided the matter should be put to the Cascade County Tavern Association, which is hosting the MTA convention next year.

The new ABL member publication, the ABL Insider, is struggling to cover costs with ad revenues, as did its predecessor, the ABL Leader, Keck reported, noting the publication has been unable to attract any beer advertising.

Under new business, it was reported by Staples that the GAC was considering asking the Gambling Control Division to revise raffle rules to allow schools and universities to offer "50/50" raffles that exceed the current limit of a $5,000 cash prize.

He also said the GAC was scrutinizing intra-state internet gaming, since it had been authorized by a new federal law passed last summer. He noted some groups have proposed running raffles on the internet which is clearly illegal under Montana's current internet gambling prohibition law.

He said MTA has traditionally opposed internet gambling whether intra- or inter-state in scope, though a law passed by the Montana Legislature last session authorizes parimutuel fantasy leagues (fantasy leagues and simulcast parimutuel wagering have both long been legal under Montana statute) that would operate under the auspices of the Board of Horse Racing to raise funds for horse racing programs and purses.

Some members expressed concern that there was "a lack of information" regarding the parimutuel fantasy leagues.

Kent Frampton, who said he had attended a presentation and discussion on the subject at a Gaming Industry Association of Montana meeting the previous week, disputed that there was any "secrecy" since anyone who wanted to know more could simply ask. He said the rules were in development and that a draft was due out soon.

Frampton added GIA adopted a position in opposition to intra-state internet gaming excepting those forms already legal under Montana law, including the state lottery, simulcast parimutuel horse racing and fantasy league parimutuel wagering. He said it had been reported the state lottery system provider, intralot, was examining the possibility of offering intra-state internet poker and keno.

Frampton said a "system provider" would be required to furnish the hardware and that coin machine distributors may get involved for installation and location training purposes. He was adamant, however, in assuring everyone the games would be available to any licensee that wanted to participate, though he acknowledged that for some, the fantasy leagues would not be a good business fit.

Staples asked if the board's primary concern is that the fantasy league system be available to all licensees.

Keck said if that aspect was addressed, the group should not be opposed and Frampton reiterated his understanding that any licensee could get aboard.

Staples said if further concerns did arise, MTA would take measures to address them.

With that, the board voted to elect Jupe Compton to a two-year term as new chairman of the board, and Tom Heisler was elected vice chairman.

Finally, the 50/50 raffle winner was declared– Bob Miller of the Bear Claw in McAllister won $320.

Source: The Montana Tavern Times, December, 2007, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.