Montana Tavern Association Government Affairs Counsel Mark Staples told the board of directors that when it comes to licensed businesses, the looming legislative session may focus more on liquor issues than gaming.
The board met at Jorgenson's in Helena Nov. 16. President Jupe Compton gaveled the meeting to order at 1:30 p.m., then asked for a moment of silence in remembrance of recently deceased member Dee Baber, long-time manager of Helena's Best Bet Casino.
Staples was asked to summarize the deliberations of the MTA Legislative and Gambling Committee which had convened earlier that morning (see detailed report on the committee meeting beginning on page onein this edition).
He first noted Governor Schweitzer is on the record opposing abandonment of a license quota system that has effectively protected the public from the willy nilly proliferation of liquor licenses, and would oppose legislation that might confiscate the investments current license holders have made in their businesses.
He said the MTA licensing subcommittee has made important progress in their deliberations and that he expected the committee's work to result in one or two pieces of legislation that could ameliorate pressure building within the system.
Assessing the recent election, Staples told MTA directors he believed this Legislature would be fair when dealing with small business issues. He noted both chambers were nearly evenly split which is not a detriment to the MTA since the organization is clearly nonpartisan. He added the governor's office also appears to be "attuned to the needs of small business."
"We lost a few friends," he said, "but we also gained some new ones."
He told directors an Indian gaming bill would be introduced that, if passed, would give the governor the authority to allow tribes total jurisdiction over all gaming on their reservations--tribal and non-tribal operations--including choice of games, payouts and wagers, tax rates and collection and enforcement.
If passed, Indian gaming could be "wide-open" resembling Las Vegas gaming with slot machines, roulette, blackjack, craps, baccarat and more, Staples said.
Staples said he wasn't sure any legislature would want to give a governor such sweeping powers and, in turn, wasn't sure any governor would want such responsibility.
He said the situation of the Flathead Reservation remained tenuous (see report on Flathead gaming status elsewhere in this edition) though he was optimistic some agreement could yet be forged before expiration of the Flathead gaming compact Nov. 30.
In the event no new compact is enacted, or the current compact extended, Class III gaming on the reservation, which includes poker and keno machines, would cease, and all gaming operations would have 15 days to get equipment off the reservation.
The governor's office has offered the tribe more machines and higher payouts and an extension until the Legislature adjourns May 1, none of which had been accepted by the tribe at the time of this report.
Non-tribal operators on the reservation had indicated, Staples said, that they had no interest in operating under tribal jurisdiction.
Staples said the latest reports regarding gaming at the Blackfeet Glacier Peaks Casino in Browning were that no illegal, noncompacted Class III games are being run there.
He said the Legislative and Gambling Committee had also considered the revisions to live poker proposed by a Gaming Advisory Council (GAC) subcommittee. The Gambling Control Division was seeking increased fees for dealer licensing, cardroom contractors and poker table permits, which it said it needed to properly enforce the booming game.
The GAC subcommittee had also proposed, among other revisions, increasing live poker pot limits to $800 to bring it in line with poker machine maximum pots and to provide additional income for dealers and operators to pay the fee increases.
However, concern from the governor's office and some operators weakened Gaming Advisory Council support for a number of provisions in the proposal so the MTA Legislative and Gambling Committee likewise withdrew its support for the fee increases. At a meeting of the GAC the following day, the proposal sustained heavy revision and now contains almost no provisions for fee increases, nor for increased pot limits.
Staples told the board the state Department of Revenue will bring legislation to revise statutes governing direct shipping of wine in Montana in order to bring the state into compliance with a 2005 U.S. Supreme Court Decision (Granholm v. Heald) that prohibits states from discriminating between in-state and out-of-state-producers. MTA neither opposed nor endorsed the proposal but will instead remain neutral.
President Compton called upon Kent Frampton to give the Insurance Committee report. Frampton said MTA and HUB international/Talbot insurance continue to work toward a contract that would include an MTA endorsement of a health insurance program being marketed by HUB.
Frampton said he thought an agreement could be finalized by mid-December and the board voted to give the committee authority to conclude such an agreement.
Sandy Jones, in the absence of committee chairman Sue Foster, was called upon to give the Public Relations Committee Report. She summarized the results of the "Dinner/No Dinner" raffle and the poker tournament, both conducted in conjunction with the recent state convention.
She noted the group voted to purchase an advertisement in a high school magazine that deals with drug and alcohol abuse issues, and voted to request $6,250 in the 2008 MTA budget to help fund a responsible gambling awareness advertising campaign contemplated by the Gambling Control Division.
That money was part of $25,000 being sought from industry groups by the division, with equal amounts to come from Gambling Control and the State Lottery.
The campaign would air during March of 2008 in conjunction with national Problem Gambling Awareness Week. Traffic with the state's problem gambler help hotline and with the Montana Council on Problem Gambling was to be monitored during and after the campaign to measure response.
Jones also noted the PR Committee had been notified the Gaming Research and Education Fund would in the future likely seek money for an update of a gaming economic impact study first conducted in 2002 by the Bureau of Business and Economic Research.
Mary Jane Heisler was asked for a report from the Budget and Finance Committee. She told directors income was running slightly ahead of projections and expenses were slightly behind, so the group was enjoying a fully solvent position. Heisler said membership, however, was slightly lagging.
She noted the recent state convention had earned the group approximately $40,000, but said the American Beverage Licensees, the MTA's national affiliate, would seek a $5-per-member dues increase, as ABL is still struggling with a shortfall due the Distilled Spirits Council in August 2005 withdrawing its support from the retailers organization.
Harry Klock, an MTA representative to ABL, told the directors he'd just returned from a national board meeting in Annapolis, Md. He said ABL had neither supported nor opposed HB 846, revised legislation aimed at reducing teen drinking. It had passed the U.S. House but could be held up in the Senate, Klock said.
He said ABL continues to closely monitor efforts by Costco and other mega-retailers to tear down the traditional three-tier system of alcohol production, distribution and retailing. He also noted legislation to allow business associations to offer members their own health plans will likely go nowhere in this session.
Klock said anti-alcohol extremists continue to push for mandatory ignition interlocks on all automobiles which would prevent them from being driven if the driver had any amount of alcohol in his or her system. Such devices would effectively kill the on-premise business, he said.
He also said ABL and its state affiliates are pushing their "Drink Responsibly. Drive Responsibly." campaign for the holiday season, airing commercials and the like nationwide. He noted ABL will conduct its annual convention in Las Vegas March 4-6, and it's next board meeting in New Orleans in January.
Diana Koon, MTA executive director, was next called upon to report. She said the MTA executive office was again short-staffed, and suggested being able to offer some benefits such as insurance could aid in attracting quality, loyal staff.
She also said the office was assembling its "preference list" to help members electronically track legislation of importance to their businesses as it moves through the Legislature.
Koon reminded the group the next board meeting would take place at Jorgenson's in Helena Jan. 30, followed by the gala legislative reception at the same location.
Under new business, the board voted to appoint Darrell Keck to fill out the remainder of Bill Lincoln's term as MTA representative to ABL, provided Lincoln resigns, since he has recently sold his license.
To end the meeting on a positive note, Livingston's Wanda Waylander won the 50/50 drawing and took an unexpected $435 home with her.
Source: The Montana Tavern Times, Dec., 2006, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.