Montana Tavern Association board meetings often begin on an informal note, and the meeting conducted May 2 at Jorgenson's in Helena was no exception.
"How was the pheasant hatch up on the Hi-Line?" MTA President Jupe Compton of Havre was asked, followed by, "And how are the salmon flies coming on the Madison?" posed to MTA director Bob Miller of McAllister.
With hunting and fishing inquiries out of the way, MTA Legal and Government Affairs Counsel Mark Staples was called upon to give the report of the group's Legislative and Gambling Committee.
"We had a good session," Staples told the MTA Executive Board. "I like to think you benefited from good lobbying," he said, "but really, it is due most to our preparation--what you do all year long: the personal and professional relationships you form with candidates and legislators, the support we give them, the candidate forums we conduct..."
Staples added, "We have also cultivated good working relationships with the Governor's administration and the Departments of Revenue and Justice. And finally I think it's the reasonableness of our positions and the fact that we don't ask for much in a process where most do."
Staples said it helps as well that "we work with bill sponsors before the session begins, while the bills are still being drafted."
He reminded members, though, that difficult situations remain, particularly the struggles being faced by licensees on the Flathead Indian Reservation where a gaming compact between the state and tribe expired late last year.
All reservation operators have since been unable to offer Class III gaming such as video poker and keno. The tribes continue to operate Class II gaming, which is essentially bingo including the slot-like video "Rocket Bingo." Some non-tribal licensees have reported significant revenue losses leading to employee layoffs and difficult financial straights.
Staples said the situation is "really tangled" with state and tribal negotiators having ceased meeting. "There have been 30 or 40 business owners badly hurt," he said. "Unfortunately, right now there is no end in sight and there is no obvious rabbit we can pull out of the hat, though I wish with all my heart there was."
But there were bright spots to report, Staples said, noting the passage of Sen. Dan Weinberg's (D-Whitefish) SB140, referred to as "the cabaret bill."
While creating enough new restaurant beer and wine licenses to relieve pressure on the quota system, he said, the bill also preserves the value of existing licenses while closing loopholes that had opened in the original 1999 cabaret statute.
Staples said with the legislative session's demands on the Department of Revenue, he understood why but was still disappointed the law could not take effect immediately, but rather July 1, meaning new licenses wouldn't actually be available until late summer or early fall.
Another bill followed closely, and worked, by MTA was HB633 by Rep. Ernie Dutton, (R) Billings. This bill cleaned up the license lottery process which had been altered through rule, which then resulted in hundreds of purely speculative applications for single census quota licenses. This has precluded many serious applicants from winning a lottery license for a new business venture, which many viewed as stifling true economic development, Staples said.
The revisions would eliminate gambling provisions for lottery all-beverage licenses that were acquired by "floating in" licenses from over-quota areas. It would also require lottery applicants to provide proof of a $100,000 line of credit, would restrict lottery applications to one annually and would exclude those who already have an all-beverage license from applying.
HB633 would also require a lottery license be put to use in a business within one year of being issued and would not allow that license to be sold or moved for five years.
Staples said beer and wine shipping laws were revamped to bring them into compliance with a 2005 U.S. Supreme Court decision that forbade states from discriminating against out-of-state wineries and breweries in favor of in-state businesses.
He also said Montana's law requiring in-state residency for holders of liquor licenses had to be overhauled in light of a 2005 District Court ruling that found residency requirements were discriminatory. Some non-residents have applied for Montana licenses since the court ruling.
Two beer tax bills--one that would have doubled the tax--and two gaming tax bills--one that would have increase taxes on licensees by $29 million--were killed by committees, Staples said.
One of the gaming tax bill sponsors threatened a citizen initiative, and that possibly would require watchful vigilance on the part of licensees, he said.
A couple of bills aiming to bolster horse racing passed, Staples said, as did a bill to allow the retail sale of "antique" gaming devices under certain conditions.
A board member asked Staples if anything can yet be done to ease the burden of higher minimum wages, especially as regards tip credits for employees or employers.
Staples said there is a dichotomy in current law where employers are taxed for unemployment and workers comp as though tips are wages, yet must count tips as gifts, not wages, when calculating minimum wage rates.
"Which is it?" Staples asked rhetorically. "Are tips wages or gifts?" He said the issue could be revisited in order to iron out the inconsistency.
In concluding his report, Staples said he thought, on the whole, it was a successful session for licensed business owners. No measures that would have damaged businesses were passed and a couple that could actually help had been signed by the Governor.
"The friendships we have--you have--built through your hospitality, your professionalism, your community involvement, your work with candidates, political forums, support--all the preparatory work--makes my job easier," he said. "I just try to apply all the good will you have developed.
"But we must also continue to cultivate that goodwill; that's what we do when one session is over--start preparing for the next one."
When a board member asked Staples about the 2009 ban on smoking in any workplace, another board member said he believed when the state passes that law, it should be obligated to provide the enforcement mechanism and personnel, and should not force business owners to become policemen.
Another asked if Indian gaming venues would continue to allow smoking, as that would accrue competitive advantages to them.
Staples said that could indeed be a problem as tribal venues would not be subject to the ban as it is now written.
Another board member noted Billings city government will apparently consider special zoning ordinances to regulate where casinos can be sited within the city. Staples said zoning issues have been an MTA concern in the past and will be closely monitored in the Billings case.
In addition, it was said, Billings may consider an ordinance banning the on-premise sale of alcoholic beverages at businesses that also sell gasoline, somehow concluding the combination may lead to more drunk driving.
MTA President Jupe Compton then called for other committee reports. It was noted the insurance committee did not meet, so Sue Foster next gave the Public Relations Committee report.
She said MTA Executive Director Diana Koon had prepared and was distributing letters-to-the-editor commemorating May as National Tavern Month.
She also noted the main MTA fundraiser, the "Dinner/No Dinner" raffle, was proceeding and that over 180 tickets had been sold so far at $100 each. The raffle aims to sell 1,000 tickets and give away $50,000 in cash prizes.
There is an "early bird" drawing conducted August 15 for a $4,000 prize. That ticket then goes back into the pool for additional chances at more money. She urged that all tickets sold by August 1 be sent to the MTA office for inclusion in the early drawing.
Foster reported 1,000 pads of 50 stickers meant to be affixed to paid invoices had been ordered through Summit Gaming and would be distributed to members. The stickers read, "This invoice paid with liquor and gambling revenue," and is intended to remind suppliers to support the aims of the licensed business association members.
Several requests for charitable contributions from MTA were deferred to local chapters. It was noted the MTA raised over $10,000 last year for the Shriners work with injured and disabled children through the sale of football placards in area taverns in conjunction with the Shrine East/West high school football game.
Foster urged directors of local tavern associations to remind members to submit nominations for the "Employee of the Year" award to be presented at the Sept. 12 convention banquet in Kalispell. The award is sponsored by the Montana Tavern Times.
It was presented for the first time to much acclaim in 2006. Dennis Kelleher of Borrie's in Great Falls was the honoree. He was presented a specially created plaque, adorned with a bartender's jigger and stir spoon, along with a $100 bill. He was fully featured in the post-convention edition of the Times. A runner-up is also chosen and presented with a certificate and a $50 bill.
MTA Public Relations Committee member Sandy Jones of Missoula is coordinating the award and has asked that nominations be sent to her by Aug. 1 which will allow a panel to review them and select a winner. That timing also allows an employer to adequately plan and schedule for the employee's presence at the banquet. The winner's employer will be notified by August 20. Nominations should be sent to Jones in care of the Best Bet, 3620 Brooks, Missoula, MT 59801.
Harry Klock, one of MTA's two delegates to the American Beverage Licensees (ABL), the MTA national counterpart, gave the national director's report next.
He said ABL is focusing heavily on preventing damage that universal mandatory ignition interlock systems could have on the hospitality business. Some anti-alcohol groups are lobbying to get the devices installed on all vehicles (at a cost of $2,500 to $4,000 each) by the year 2012.
The devices can be set to detect minute traces of alcohol in a driver's breath or perspiration, preventing the vehicle from being started. That would effectively destroy the on-premise business, Klock said, so reasonable alternatives to mitigating actual drunk driving must be found.
"We need to focus on high BAC (blood alcohol content) and repeat offenders who are mostly responsible for drunk driving crashes," Klock said, adding this is the aim of ABL.
A "white paper" on the subject has been prepared by ABL and was distributed to the board. Additional copies can be obtained from MTA headquarters or from the ABL.
He also said DISCUS (the Distilled Spirits Council of the U.S., the distillers' lobby) was considering once again allying with ABL after the two groups had a falling out over ABL campaigns DISCUS deemed too aggressive. At the time, DISCUS withdrew all of its support from ABL and members pulled their advertising from ABL's member publication at the time, the ABL Leader, which subsequently had to fold as a result.
After some discussion, the MTA board voted to not endorse the return of DISCUS.
Koon then gave her executive director' report, noting the next full board meeting will be at 10:30 a.m. Sept. 13 during the Kalispell convention at which an election of officers will also be conducted.
Koon said the MTA budget Committee will meet July 11 and that funding requests need to be submitted to Committee Chair Mary Jane Heisler by July 9 to be considered. Nominations for the Durkee Award need to be into the MTA office at that time as well, Koon said
Membership renewal notices were to be mailed mid-May, Koon said, and urged members to check furnished lists of identified non-members, then act to recruit them.
She concluded her report by reminding directors, and asking them to remind folks back home, that MTA offers on-line TIPS Server Training at very reasonable rates which benefits operators and MTA.
Joyce Sponheim won the day's 50/50 drawing and pocketed just a little over $300.
Source: The Montana Tavern Times, June 2007, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.