At the opening of the Montana Tavern Association Legislative and Gambling Committee meeting Nov. 8, it was noted the next general election was only one year away, and that would be followed by a gathering of the state legislature only a couple of months after.
Thus it was little time to be begin the examination of pending issues and possible solutions, committee chairman Pat Kelly reminded the group, as he turned the podium over to MTA Government Affairs and Legal Counsel Mark Staples. The committee met at 10 a.m. in the Jorgenson's banquet room in Helena.
Staples told the committee and MTA members that the recent round of "cabaret" restaurant beer and wine (RBW) licensure was proceeding apace, noting many "speculators" had departed from the process when it became clear what an RBW "license was and what it was not and what the responsibilities inherent in operating a licensed premise are in general."
Despite the new availability of over 120 cabaret licenses, some restaurants persist in operating illegal "bottle clubs," Staples reported, where patrons are encouraged to bring their own alcohol beverage to consume on premise despite no license, no effective controls or training for age verification or over-serving, and no liquor liability insurance.
Staples said he believes that cities that have been advised that the illegal practice is occurring within their jurisdiction yet refuse to take action run the risk of substantial lawsuits and damage claims against them if a patron of a "bottle club" subsequently harms citizens or damages property.
He said at a recent meeting of the Gaming Advisory Council, Montana Department of Revenue Liquor Division Administrator Shauna Helfert acknowledged the "bottle club" issue is being "looked into" and that they indeed pose "a problem" in the careful regulation of alcohol.
Staples said, when examples were brought to the attention of MTA, local governments with jurisdiction over such operations would be notified and advised to act according to the law.
The topic of local government regulation and responsibility prompted one member to ask about what appears to be an increasing tendency for local governments to enact ordinances under zoning authority to impose ever more specific regulation of gambling which has been in the purview of the state legislature.
Members said they didn't object to local governments zoning the location of licensed establishments, but wondered about jurisdiction when it came to determining the number of machines, the type of games offered and even linking required parking spaces to the number of machines permitted.
Staples noted the Gaming Advisory Council (GAC), at it's meeting the previous week, had created a committee to examine the issue. GAC members Steve Morris representing MTA, Kalispell Mayor Pam Kennedy representing cities, and Garfield County Attorney Nick Murnion representing counties, comprise the committee which is scheduled to meet Nov. 28.
Staples said MTA would monitor the committee's deliberations and work product and would offer input when and if appropriate, but noted that at some point a licensee may take it upon themselves to challenge the ordinances.
When a member inquired as to the status of state-tribal gaming compacts, Staples reminded members non-tribal licensees have no say in state-tribal compacts, which are governed by federal law, but did note the federal Indian Gaming Regulatory Commission has issued new proposed rules that would reclassify the nationally linked "bingo" machines such as "Rocket Bingo" as Class III games instead of Class II as they are currently and which can be operated without a state compact.
He said he believed the commission's rules were facing a steep uphill political landscape when it came to reclassifying the games.
Source: The Montana Tavern Times, December, 2007, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.