MTA hears from McGrath, Huntington, Helfert
Pub Date: 10/1/2008
The Wednesday general session of the Montana Tavern Association Convention is considered by many to be the event highlight.
This is where licenses hear from, and question, top state regulators and candidates running for important offices.
This year MTA members heard from Montana Atty. Gen. Mike McGrath who heads up the Department of Justice (DOJ) which oversees the Gambling Control Division (GCD). Of course, GCD Administrator Gene Huntington was also present as was his counterpart at the Liquor Division of the Montana Department of Revenue (DOR), administrator Shauna Helfert.
But first there was a warm welcome offered by second-term Great Falls Mayor Dona Stebbins who noted she "learned a lot" in her many years of working in taverns both as a server and entertainer.
She characterized the tavern owners she knew as unfortunately "often being valued least" in the community, yet in reality being "hard working, honest, generous and good natured."
Taverns, she said, provide an artificial extended family, "a comfortable and welcoming place to go. I value your hard work, the good jobs you provide and your generosity. After all, when was the last time you heard of a community fundraiser being conducted in a retail clothing store? Great Falls is honored to host you."
MTA Government Affairs Counsel Mark Staples then introduced members of the panel, starting with Atty. Gen. McGrath.
Staples noted McGrath served as Lewis and Clark County Attorney before being elected Montana's Attorney General eight years ago. Unfortunately, Staples said, term limits preclude another term as A.G. McGrath is now running for Montana Supreme Court Chief Justice, a six-year term.
"When Mike first ran, we believed he'd be a fair regulator and that has turned out to be the case," Staples said. "Mike is, among many other positive traits, a good judge of people.
He made an excellent choice in his Gambling Control Division Administrator Gene Huntington, and we thank Gene for his firm and reasonable hand, as we do his staff, including Rick Ask."
Staples said in the fairly distant past, it seemed either the Department of Revenue or Gambling Control were alternatively dysfunctional when it came to licensing functions. "Now both are functioning well," he said, "and that is due in part to Revenue Director Dan Bucks and his Liquor Division Administrator Shauna Helfert as well as her able staff, including assistant Jason Wood. These two are wonderful to work with and are eminently fair while maintaining complete professionalism."
McGrath was called to the microphone first and said, "I hope you find reasons in the future to invite me back here.
"we've made great strides at the DOJ in how we approach issues. we've made ourselves an agency that regulates business and assists them in moving forward. We reduced the licensing process time frame from 193 days average to 30 to 40 days.
"And there's been great progress in on-line business applications with 80 percent of all video gaming machines now reporting on-line. That's good for (operators) and for the department. It's been a great leap and We're very happy with how that's been going.
"Gene has done a tremendous job with his private sector and government experience. He's forged a great relationship with the DOR. I personally appreciate Gene's effort." McGrath also praised his Gaming Advisory Council appointees.
"Now I'm a candidate for a different office," he continued. "It's an interesting evolution for me'; different aspirations. It's an important office and is an opportunity to continue in public service and to get some things done.
"There is a big administrative problem in the court system where 70 cases are more than a year old'; they've been heard and are just waiting for a decision. Some cases are two and three years old. That's unacceptable," McGrath said. "I'll work to clean up that backlog because justice delayed is justice denied. More management and efficiency is called or. I would appreciate your continued support."
Huntington spoke next, touching upon the electronic reporting system that is now almost ubiquitous. He said the system, including the machine permitting module, is working well, and credited a half dozen of his staff by name.
He noted the effort would not have been successful without the cooperation and participation of the industry. "The response has been overwhelming," he said. "It has been a lot of work but also a great experience."
He also noted the Gaming Advisory Council has recently begun tackling the complex, interrelated issues surrounding advancing machine technology and equipment obsolescence.
He said that body is studying the potential to eliminate duplicate-printed machine audit rolls, and is looking at statutory and rule changes to make refurbishing of old machines more practical.
"These are long-term, not just immediate problems," Huntington said. "These are important issues. Through the Tavern Times, We're getting them publicized. Read about them, then get your members to the meetings."
Huntington also said the multi-game agreements which conditionally allowed operators to field machines housing both poker and keno as long as licensees began using electronic reporting when a system became available are being enforced, region-by-region.
"Billings is done. Missoula is next," he said. "We are doing a region every tax quarter" and that process will be complete in 2010. We are trying to make it orderly and predictable."
Shauna Helfert spoke next, thanking licensees for "being in the business, for your professionalism and cooperation and for your respectful relationship" with liquor regulators. "You make big tax contributions that pay for needed services. Thanks for your commitment to social responsibility, selling only to adults and those who drink responsibly."
Helfert said MTA Executive Director Diana Koon and Staples "are great to work with" and said the same was true of her counterpart, Huntington, at Gambling Control.
In recapping recent legislative changes, Helfert noted that, because of recent court decisions, out-of-state residents can now apply for Montana beverage licenses but, to-date, only 12 had done so.
She also noted out-of-state small wineries and small breweries can directly, with limits, market product to retailers and consumers, yet only one winery had actually applied to do so.
She said three licenses will be added to the Bozeman/Belgrade quota area due to estimated population growth and two will go to Billings. These "floater" licenses will come from the areas in the marketplace where there are more licenses than populations warrant.
Helfert noted when there are more applications than there are licenses available, a lottery is conducted to fairly determine who will have the right to buy a floater license. That will be the case in both Bozeman/Belgrade and Billings, she said.
The floaters are conditional, she noted: applicants cannot already own an all-beverage license, one lottery application per year per individual, a $100,000 letter of credit furnished, license put into use within 12 months and no gambling privileges attached.
She said in many communities there are still surplus restaurant beer and wine "cabaret" licenses available, nearly 80 of them.
She also said her agency continues to work toward licensee and public education regarding alcohol issues, including offering server training for on- and off-premise retailers.
"We're all learning and looking for ways to do better," Helfert said. "We're trying to provide you with more information on being in compliance."
She said she sees a time soon when liquor license renewals will be done on-line.
In closing, Helfert said the Division will soon be entering into negotiated rule-making to clarify what constitutes "closing hours" for brewery sample rooms.
With that, Staples thanked retiring state Sens. Joe Tropila and Jerry Black, as well as Rep. Bill Thomas, who were all present, for their dedication to fair liquor legislation.
He also thanked former Gaming Industry Association Executive Director Rich Miller for his years of service to the business and welcomed GIA Executive Director Neil Peterson to his new post.
Source: The Montana Tavern Times, October, 2008, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.