MTA Committee previewed expected legislation
Pub Date: 10/1/2006
With 465 bill drafts requested by the time the Montana Tavern Association Legislative and Gambling Committee met Sept. 13, Government Affairs Counsel Mark Staples promised licensees no respite from the usual legislative barrage expected during the 2007 session.
The best way to deal with bills coming at the business from left and right, is to build relationships with legislators well before the action begins, Staples said. Drumming once more on a well worn theme, Staples urged MTA members to meet candidates, become familiar with their views and support those who will be fair.
These simple things can easily and quickly be accomplished at local tavern association-sponsored candidate forums, Staples said, noting time was of the essence. He suggested licensees contact him for help in organizing forums and to find out if there are candidates deserving, and in need of, support by the licensed community.
The Legislative and Gambling Committee met at the MTA's annual convention, this year conducted at the Copper King Hotel in Butte Sept. 11-14. Pat Kelly is the committee chairman and was at the gavel.
Staples said there were already several bill draft requests to alter the state's licensing system, and that MTA was poised to deal with it by offering sound proposals developed by the MTA's 2007 Committee.
The State of Montana maintains a liquor license quota system based on municipal populations. As the population of a city increases, the state announces a new liquor license can be brought into that area from an area that has lost population and is over quota. Growing cities such as Helena, Billings, Bozeman and Missoula can thus see the number of licenses grow along with populations.
Once a new license is announced, anyone in-state, out-of-state or even, now, out-of-country can put an application into a lottery from which a winner is drawn at random, regardless of whether the applicant has a place to operate a business or not. The applicant drawn is then entitled to purchase a license from an area where there are more licenses than justified by the current population, but has to be put to use by the lottery winner for a period of three years before it can be sold.
But some who wish to get into the liquor business have complained still not enough licenses are available, or complain license prices are too high, despite that everyone else in the business has paid going market rates.
Liquor license values have, as have commodities, securities and property values, been appreciating. Land prices in Western Montana even the historic stock market values have far outpaced rates of appreciation for liquor licenses.
"It's like someone who wants a piece of lakefront property," quipped one MTA member, "demanding that some be sold to him at well below market rates, or that a substantial amount of new lakefront be created so I can buy some for a lot less money than my neighbor paid."
In the 2001 Legislative session, a law was passed to allow "cabaret" restaurant beer and wine licenses to be issued, based on the population of a town. These licenses carry no gambling privileges and allow beer and wine to be sold with meals only during dining hours. Staples and the committee agreed to study the feasibility of adjusting the law to allow issuance of more "cabaret" licenses.
The committee also noted negotiations between the Gov. Schweitzer administration and the Native American tribes have not been yielding a lot of progress toward new gaming compacts.
The Blackfeet Tribe, without a compact and in no negotiations, has opened a new casino with the Class II video "bingo" games that play like Las Vegas slot machines, and have been advertising questionable "banked" table games, though no one has reported having actually seen them.
The Salish and Kootenai Tribes of the Flathead reservation also operate the Class II games, but in addition operate Class III video keno and poker machines authorized under their compact with the state, which is set to expire Nov. 30. If no new compact is reached, all Class III gaming on the resevervation tribal and non-tribal will have to cease.
Other tribes are also currently in negotiations with the state.
It was noted a bill draft has been supported by the Legislature's State-Tribal Relations interim Committee that would allow tribes to operate, regulate and tax any and all gaming on the reservation, tribal or non-tribal, and would allow them to run Las Vegas casino games such as roulette, craps and blackjack with potentially no wager or prize limits.
Staples told the MTA committee state and federal officials are aware of the evolving situation, "and I believe they are honestly trying to strike a balance here."
He also noted at least one "place holder" bill draft has been requested to earmark gaming taxes to fund health care.
A minimum wage initiative on the ballot that is of interest to hospitality business operators was discussed at the meeting, but the committee took no position at that time.
Source: The Montana Tavern Times, Oct., 2006, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.