MTA committee considers smoking rules, poker, more
Pub Date: 1/1/2006
When the Montana Tavern Association's Legislative and Gambling Committee met the morning of Nov. 8, they cut right to the chase: smoking ban rules.
New committee chairman Pat Kelly thanked his predecessor, Mike Hope, then turned the discussion over to MTA attorney/lobbyist Mark Staples.
Smoking rules
Staples quickly noted that the day before, Washington state had passed a total state-wide ban initiative by a wide margin, even though opposition spending and campaigning had been robust. He also noted that, according to polling, Arizona is expected to do likewise soon.
Montana could have gone down the same path and some would like to still see it do so Staples said, if it were not for cooler heads in the health and business communities as well as in the legislature and administration who understood business adjustments and cultural changes would take time.
"I've talked to bar owners in Washington and Arizona" Staples said, "and they're asking how did our tavern association get four years to transition?"
Montana's revised Clean Indoor Air Act was passed by the 2005 Legislature and signed into law. It calls for a smoking ban in all places of employment, with hospitality businesses eligible for a four-year exception if they derive 60 percent or more of their revenue from gambling and/or liquor, prevent those under 18 from entering smoking areas and prevent infiltration of smoke into a non-smoking area.
Staples noted the statute "spoke for itself and the phrases in it were purposeful." He said the rules implementing the law are equally concise and clear, despite efforts of extremists on both sides to so clutter them with specific detail even well beyond requirements in the statute that the transitional process would fail. (See complete report on the published rules on page 24 in this edition.)
He was complimentary of the direction and leadership provided by legislators, administration and Department of Public Health and Human Services (DPHHS) officials in keeping the rule-making process reasonable and on track.
Staples repeatedly urged licensees to call his office with their questions and concerns because, he said, there is ample misinformation circulating at the local level. As examples, he cited questions regarding entrances and bathroom access, and he reminded the committee that structural alterations to prevent infiltration are in the purview of the Department of Revenue now and the court later, if challenged.
"The legislature wants this to work reasonably, the administration and the department want this to work reasonably," Staples said. "We can make this legislation work as intended."
Live poker
Sandy Jones, chairman of the MTA's subcommittee on live poker rules, reported her committee had met with counterpart committees of the Gaming Industry Association and of the Gaming Advisory Council and that a consensus emerged that desired adjustments to rule and statute will be required to modernize and better regulate live poker games.
She said businesses share the concerns of the Gambling Control Division regarding proper investigation and licensing of live card dealers. Too many dealers acquire a temporary license but fail to follow through to secure the permanent license, she said, and the burgeoning popularity of Texas Hold 'Em has spawned volumes of dealer license applications the division is unprepared to deal with.
The answer, Jones said, may lie in new rules that stipulate a temporary license is only good for 30 days and will then expire if an applicant has not followed through the licensing process completely. Further, she said, under proposed changes only one temporary license would be issued to a dealer in any year.
A dealer application would also become more expensive, Jones noted, with an up-front fee of $100 required along with an additional $35 fee to cover the investigation and fingerprinting costs.
One member of the committee wondered why a location licensee would have to be additionally licensed as a dealer when they have already been thoroughly investigated and approved. Jones acknowledged it was a good question and said it would be brought up with the Gaming Advisory Council.
She also said there has been some discussion of a proficiency test to assure an adequate level of competency and professionalism in licensed games. Jones noted there have been reports of charity tournaments that have been conducted under less than professional conditions and which were a concern to Gambling Control.
Jones also said consideration is being given to revising tournament formats so progressive tournament rounds could be conducted at several consecutive licensed premises, or conducted entirely off-premise at a venue large enough to accommodate a large tournament, provided such tournaments are conducted by licensed entities.
She also noted some adjustments may also need to be made to pot limits to allow the live versions more conformity with the electronic versions.
Three-tier system
Under new business, a member asked about the procedures that are employed to assure on-premise retailers are properly purchasing their alcohol beverage products from approved sources such as beer distributors, as opposed to improperly at big box stores.
Staples reiterated the MTA's historic position that the industry desires careful regulation and that Montana's three-tier system of manufacturers, wholesalers and retailers was designed to do just that. Retailers are required to buy product from a wholesaler to insulate the retail tier from the manufacturing in order to prevent "tied houses" and other abuses that occurred over the years.
Staples said he would look into the matter and the steep product price differentials that other committee members brought up. On-premise retailers are often unable to take advantage of discounts offered off-premise retailers who supposedly qualify for volume discounts and "rebate" programs offered by distributors, then offer alcohol beverage retail pricing at "loss leader" rates.
Bottle clubs
A committee member also noted an illegal "bottle club" was operating in his area and said he thought the circumstances were right to make a case of it. Staples agreed and said he would follow through.
Go-cups
Another member asked Staples about the propriety of a bar using disposable drink cups, explaining that she was told at a recent police-sponsored training that the practice was illegal, supposedly as it constituted some sort of incentive to break the open container laws.
Staples assured her the practice is legitimate and cited the common instances where bars, during special events or peak times, utlize disposable drink containers because glassware may be short and to minimize breakage.
Keg registration
Another question from the committee dealt with the new keg registration law. A question had been raised earlier as to the correct disposition of the registration tag once the keg has been returned to the retailer.
The rule is unclear, one board member noted, but an inquiry of the DOR by Staples revealed the department plans no further rule clarification. The group decided it would probably be best for the retailer to remove the tag and keep it with sales records for 45 days.
Brew pubs
Another member asked about breweries that continue to expand the operation of "tasting rooms" well beyond legal parameters and intent, for instance hosting regular parties with up to 500 guests in outdoor "beer gardens" while selling beer drink tickets.
Staples said the situation deserved further investigation and noted once again that it is in the best interests of the adult beverage business that all licensees adhere to the strict intent of law.
Source: The Montana Tavern Times, Jan., 2005, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.