MTA board meets
Pub Date: 4/1/2006
By Roger Porter
The quarterly meeting of the Montana Tavern Association Board of Directors began with roll call to ascertain that a quorum was present. That being verified the meeting began in earnest with President Jupe Compton calling for the reports of the standing committees.
For the Public Relations committee, chairman Sue Crazier discussed the "Dinner, No Dinner" raffle promotion explaining that an added inducement this year will be an early bird drawing for $4,000. That drawing will be held shortly after August 15, the date when all tickets sold to date should be turned in. Final due date for returning the all outstanding sold tickets is September 7.
Next on the agenda was a brief discussion on a Designated Driver Program which has been adopted by several local chapters and which owed its success to the efforts of the Ravalli County Tavern Association.
The program was endorsed by the MTA and local organizations interested in participating were encouraged to contact Cal McComber. To date the Tri-County and Lake County Tavern Associations have followed the Ravalli County example and it appeared that a number of other associations were moving to implement this program.
Directors were reminded of the availability of the TIPS server training course via satellite with the cost being $40 per person. The program lasts four hours and participants are required to take the class at a single sitting. For every person attending from a member tavern, that tavern is given a $10 credit on next year's MTA membership.
A brief discussion also followed on the possibility of establishing honorary MTA memberships for selected persons who have rendered extraordinary service to the organization. This matter was referred to the Past Presidents committee.
The final item on the committee's report was a request for the MTA's continued sponsorship of the Shrine football event which MTA began in 2005. This was approved and recognized as a worthy cause.
Next up was Kent Frampton, chairperson of the insurance committee, who said more insurance program options are being explored.
Rose Bullock delivered a succinct report for the Budget committee with a simple "We're solvent." Those wanting specific information were directed to examine the current financial reports included in their meeting packets.
Discussion then turned to the vacant space in the Helena MTA headquarters building which has been offered for rent for an extended period with no takers. The current intent now is to reduce the monthly rent from $1,450 to $1,200 in order to attract a tenant. Should the need arise the president and chairman of the board were empowered to negotiate an acceptable price.
The final report was from the legislative and gambling committee and was delivered by Mark Staples.
The first item on the committee's agenda was the proposed rule changes for live poker. Due to the increased interest in live poker occasioned by the television coverage of Texas Hold 'Em tournaments, interest in the game has grown by leaps and bounds. The Gambling Control Division has proposed revisions "to get a handle on it."
A consensus was reached in the earlier committee meeting on proposed revisions and those recommended changes will be forwarded to the Gaming Advisory Council which next meets April 21. Staples reported that the consensus "should make life a bit easier for (Gambling Control Division Administrator) Gene Huntington" who originated the call for revisions. A Gambling Advisory Council subcommittee on live poker reviewed the adopted positions March 22 before they are to be presented to the full council April 21.
The proposed changes as they now stand will include revising the pot limits to $800 to bring them into parity with pots available on video poker terminals, tightening up the requirements to get and retain a dealer's license and to allow for progressive tournaments where winners advance to additional rounds, hopefully to qualify for national tournament play. Such tournaments would be restricted to licensed premises under MTA proposals. Regarding charity gambling, it was recommended the present regulations remain in place.
Addressing licensing and gaming, Staples was of the opinion that at this time gaming is in a rather stable state and he admonished those present to keep their eye on the licensing arena which he said could come under pressure.
Staples then addressed the funding needs of the Montana Council on Problem Gambling (which were covered in detail in a report on the proceedings of the Montana Hospitality Group in the March Montana Tavern Times.
Staples discussed the current "delicate situation" that exists with the Oct.1 expiration and the possible renewal of the gaming compact on the Flathead Indian Reservation. He expressed optimism in the ability of Montana's current governor to bring the matter to a successful conclusion.
He then addressed what many perceive as a possible problem and that is the screen display of win percentages incorporated in a new line of video gaming machines that have been submitted for approval. He said that at this point it was clear the Department of justice was going to approve the machine, and MTA would have to monitor the fallout, if any, and if necessary to propose legislation to counter the negative impacts.
The final topic on Staple's agenda was alcohol stings. In order to have the data to challenge both the efficacy and relevance of stings to the underage drinking problem (most underaged who obtain alcohol do so through adult buyers), he reiterated his call for a definitive study of underage drinkers in the high school senior through college senior age range.
MTA Executive Director Diana Koon called the directors' attention to her report which was included in the meeting packet. She covered in some detail many of the items either discussed in this article or subsequent articles included in this issue.
In addition she introduced Leslie Pulliam who will serve as the new executive assistant in the Helena office, "hopefully" Koon said, "until she retires."
She also pointed out certain changes in the coming convention trade show hours, which at this year's convention will run from 10 a.m. to 6 p.m. on Tuesday and 10 a.m. to 1 p.m. on Wednesday. This change was in accordance of a request from several vendors.
She also reminded those present to take advantage of the ABL Store. MTA members can purchase promotional products at a discount at the store and the MTA receives a 6 percent rebate on member purchases.
Bill Brown, chairman of the fall convention, delivered a brief report on the status of the convention to date. It appears that the convention plans are right on track and Bill says special attention is being paid to the golf tournament arrangements which will be held at the Butte Country Club under the supervision of John Perino.
All in all it looks like a good time is in store for all, and Brown did assure those in attendance that the trade show would not be held in the infamous "bubble" at the Copper King, where temperatures, due to an unexpected heat wave during the last Butte convention, were remembered to have been broiling.
Last on the day's agenda was the national report delivered by delegates Bill Lincoln and Harry Klock. Lincoln handed out a summary of the recent meeting of the American Beverage Licensees (ABL, MTA's national affiliate) the pair attended and quickly reviewed its contents.
The key issues addressed in the ABL Government Affairs Committee were ignition interlock devices, wage and labor issues (minimum wage), alternatives to employer funded health care, anti food and beverage activism, death tax repeal and the 2006 Democratic/Republican balance.
The main thrust of the ABL Communications Committee was the "Drink Responsibly. Drive Responsibly." campaign and several suggestions were made for state affiliates to take full advantage of the program.
Under the accomplishments heading, MTA's national directors noted repeal of the Special Occupational Tax (with special thanks to Max Baucus) which will save adult beverage retailers millions. MTA was presented the ABL Government Affairs Communication Award at its recent convention in Las Vegas. The national directors also lauded the defeat of the Lautenberg mandate in the federal highway bill that would have required ignition interlock devices on new cars.
Lincoln and Klock each donated $500 to the national PAC, ABLC on behalf of the MTA.
Members were encouraged to support Skyy Vodka, Gosling's Rum, the Pallini line of Italian liqueurs and Tito's Handmade Vodka, distillers who have consistently supported the ABL in its endeavors, particularly since the Distilled Spirits Council of the U.S. (DISCUS) weithdrew its support from the national retailers association.
The finale of the day's business was the presentation by Klock of the Brown-Foreman Retailer of the Year award to Russ DeVries of Havre.
The Confederated Salish and Kootenai Tribes of the Flathead Indian Reservation laid out their opening position in newly started gaming compact negotiations with the state via a public announcement March 22.
The tribe is seeking regulatory control of all aspects of all reservation gaming tribal and non-tribal operations and taxing authority over it, a considerable expansion of tribal powers compared to the existing compact.
If no new compact is arranged, all Class III gaming on the reservation will have to end, as it did in the mid-1990s, leaving only the tribe to offer gambling of the Class II variety which features "traditional games" including bingo. Class III games are considered "casino games" such as poker and keno which are currently allowed under state law, but also other "table games" as well such as roulette, craps, black-jack and slot machines which are not legal in Montana.
Under the current compact which expires Oct. 1, the Salish and Kootenai are operating 185 Class III poker and keno gaming machines at 12 locations with gross revenues of $3.2 million a year, according to CS&KT spokesman Robert McDonald.
He said non-tribal licensees operate 371 poker and keno machines at 37 locations which are regulated and taxed by the state and have gross revenues of $5.5 million, of which the state collects $825,000 in taxes.
Initial press coverage said tribal machines grossed $11.4 million and non-tribal machines grossed $15.7 million. Instead, a later tribal clarification indicated those amounts represented the total cash-in and did not take into account cash paid out in prizes.
McDonald added that some early press accounts erroneously stated the tribe wanted control of all gaming revenues, whereas he said in a further clarification that the tribe was instead seeking the tax revenue currently collected by the state from non-tribal gaming operations.
The Tribe also operates an undisclosed number of Class II video gaming machines that have been declared by the courts to be a variety of bingo but which operate much like conventional slot machines.
The tribe is allowed to operate as many Class III gaming machines as non-tribal licensees operate on the reservation, may place as many of the allowed machines as they desire in any one location, and may offer $5 maximum wagers and $1,500 maximum payouts, whereas non-tribal operators may place 20 machines at a location and offer $2 maximum wagers and $800 maximum payouts.
The tribe is also running the slot-like Class II "bingo" machines that offer theoretically unlimited payouts. In 2005, one player won over $180,000 in a single jackpot on one of the Class II machines. Currently, the federal justice department is seeking changes to the National Indian Gaming Regulatory Act (NIGRA) that would restrict the Class II "bingo" machines.
Under the tribe's proposed new compact, the tribe alone would "license, regulate and enforce (law)...for all gaming" within reservation borders.
Further, the tribe would regulate and presumably tax all forms of gaming including video gaming, simulcast racing, calcutta pools, fantasy sports leagues, raffles and all other forms of gaming currently allowed by state law.
The tribe's proposal would authorize the tribe to, solely at their discretion, set bet and wager limits and prize limits, set the number of gaming machines, tables or devices, and to be the sole enforcement authority over all gaming on the reservation.
When it comes to tribal gaming and gaming operated privately by tribal members, the tribal government functions as the lone machine vendor and keeps 58 percent of gross revenues with 42 percent going to the location operator.
Source: The Montana Tavern Times, April, 2006, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.