Kent Frampton, sitting in for Chairman Pat Kelly who was ill, gavelled the meeting of the Montana Tavern Association Legislative and Gambling Committee to order when it met at 10 a.m. at Jorgenson's in Helena March 4. The committee met prior to the quarterly executive board meeting later in the day.
Frampton called upon MTA Government Affairs Counsel Mark Staples to lead the discussion.
Staples said he had been fielding numerous calls regarding the U.S. Treasury's issuance of new high-security five dollar bills which incorporate many features which are said to thwart counterfeiting, and which is also said to be a Homeland Security issue.
He questioned how many countefeiters would be interested in five-dollar bills andhow they could
possibly be a security issue.
The problem is, however, Staples said, between 3,000 and4,000 of the state's video gaming machines will not be able to integrate new or upgraded bill acceptors that recognize the new fives. Another 4,000 or so will need entirely new bill acceptor devices at a cost of up to $950 per unit. Finally, the remaining 10,000 machines will need to have their current bill validators upgraded with new chips or new flash memory code at $50 each.
The machines that, so far, are regarded to be beyond upgrades are primarily the VLCs, the IGT Players Edge series, and about half the IGT Select-A-Game models. Others are Reno Keno, Dynamos, Merits and a few more long-gone brands.
Staples said he is investigating whether some manufacturer of bill validators might find adequate incentive in the dilemma to develop and build devices or a fix for these 3,800 machines. He said, he didn't believe there should be any legal prohibitions to such a solution.
Staples noted the same problem affects many other kinds of vending machines from soda to snacks, adding further incentives for some enterprising and ingenious manufacturer. He also said national coin machine vendors associations were trying to get Treasury to delay the release until some practical answer can be found. However, release commenced March 13 as scheduled.
"We're working on it," Staples said, but if no technological or engineering solution can be found, perhaps owners of the old machines may want to start hoarding the old-style fives, which banks and the Treasury begin withdrawing from circulation as soon as the new fives are released.
Steve Morris pointed out that even the old bill validators will still take current-issue ones, tens and twenties.
Darrell Keck noted that, as usual, it is the small operator who bears the brunt of these policies because that operation may be marginal to begin with, making wholesale machine replacement or substantial upgrades unaffordable. He noted that even small vended establishments may get hit as vendors pull the old inventory without necessarily replacing it with upgraded gear.
Staples concluded the discussion stating, "We're doing what we can, making every inquiry we can."
He next reported on a contact from the Wheatland County Sheriff inquiring as to MTA's position on proposed legislation that would require drivers licenses for those under 21 years of age to be produced with a vertical format as opposed to the current standard horizontal format. Many other states have already adopted the concept.
Committee member Jim Walker said, "That seems to be a no-brainer." Harry Klock said he told the Sheriff he thought it was a good idea.
Keck said there is renewed national debate over the wisdom of a uniform 21-year age threshold for alcohol purchase, possession and consumption. In order to head off future statutory problems, any legislation regarding drivers license formats ought to refer only to those "under the legal age, not specifically 21," he said.
The committee agreed to not oppose legislation along these lines.
Next Staples led discussion on proposals in some quarters for mandatory server training. In addition, he said, it had been proposed that servers, if convicted of selling to a minor, be barred for one year from working as a clerk or server in a business licensed for on- or off-premise retail alcohol sales.
Staples said MTA will participate in the discussions to protect licensees interests and to "help direct these access measures at the true access problems," namely of-age buyers for under-age drinkers.
Staples noted a pending March 20 filing deadline for candidates for public office and urged local members to contact him with their views regarding candidates who had filed in local districts.
Staples pointed out the June 6 primary election is of importance because in many districts the primary race is the real--or only--race as some candidates will have no general election opponents, and that some districts lean so far toward one party or the other that general election outcomes are nearly foregone conclusions.
Staples advised members to be ready to continue to explain the justification for the state's proven population based liquor license quota system that is designed to prevent liquor from being available simply anywhere and everywhere, especially considering the dichotomy that social reform activists are clamoring for ever more limited access to alcohol.
Member Steve Morris said he is hearing from more customers about Montana's relatively expensive liquor, especially when prices are compared in adjacent states.
"They just don't understand how much of the price is federal and state tax and state mark-up," he said.
Source: The Montana Tavern Times, April, 2008, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.