By weight of it's sheer numbers, the Montana Tavern Association warrants respect in political and government circles: 800 plus business members, the third largest employment sector with 24,000 workers, upwards of $80 million paid every year in taxes of all kinds, an annual payroll that exceeds $200 million, $700 million in spending on products and services...
It's no wonder when the group conducts its annual convention it attracts government officials of all kinds.
This year at the Kalispell convention, in addition to the five declared candidates for attorney general who comprised a panel (see related story on page 3 in this issue), numerous others were in attendance including many legislators, among them:
Rep. Bill Beck (R-Whitefish), Rep. Craig Witte (R-Kalispell), Rep. Jon Sonju (R-Kalispell), Rep. Mark Blasdel (R-Somers), Rep. Galen Hollenbaugh (D-Helena), Rep. and House Minority Leader John Parker (D-Great Falls), Rep. Harry Klock (R-Harlowton), Rep. George Everett (R-Kalispell, Rep. Janna Taylor, (R-Polson), Rep. and Speaker of the House Scott Sales, (R-Bozeman) and Rep. Steve Bolstad (D-Great Falls).
Attending from the other legislative chamber were Sen. Jerry O'Neil (R-Kalispell), Sen. Joe Tropila (D-Great Falls) and Sen. Verdell Jackson, (R-Kalispell).
While conventions are apparently good places to rub shoulders with lawmakers, the regulatory chiefs are also in attendance and this year participated in a panel for the benefit of members.
First up was Atty. Gen. Mike McGrath, who is term-limited and now seeking election as Chief Justice of the Montana Supreme Court; Gambling Control Division Administrator Gene Huntington, Department of Revenue Director Dan Bucks and Liquor Division Administrator Shauna Helfert.
First up, McGrath said he believed "a terrific system of communication has been developed between the regulators and the regulated," and that "the Gaming Advisory Council has had the most impact of anything we've done."
McGrath singled out council industry representatives Steve Morris, John Tooke and Tim Carson. "They've made a huge difference," he said, then offered a nod to "the great legislators who have served on the council," currently Sen. Tropila and, just beginning his term, Rep. Blasdel.
McGrath also had kudos for Huntington: "He's a concensus builder, he gets along and makes people understand his mission. He's a great advisor with good judgement. More than any other individual, he's built this good relationship.
"We have changed the old (adversarial) culture," McGrath said, "and you (business owners) in turn have treated us with respect.
"We don't get the complaints we used to, especially those regarding how slow the licensing process was," he continued. "It used to be 193 days average; untenable. But that has been dramatically changed. The justice and revenue departments work together and it' now down to 30 to 45 days and even less. That is a credit to Gene and the DOR."
McGrath then addressed the new internet based automated reporting system for gaming machines that is currently being implemented.
"Dial-up, as it was once called–let's not call it that anymore–is getting done and it is working extremely well. It works for both the regultors and the regulated."
He concluded his remarks stating, "I appreciate the support you have given me over the years. It means a lot to me. Your man, Mark Staples, is an amazingly effective advocate for your businesses. I've learned a lot from him."
Staples thanked the Attorney General for his kind and thoughtful words and returned his compliments, then introduced DOR Director Bucks, who Staples said has "astounding credentials," adding, "I don't know how the Governor got him... Maybe promised Dan the first litter of Jag's pups...?"
When the appreciative laughter died down, Bucks told the audience, "My hat is off to you (licensees) for the contributions you make to the economy and your communities.
"The Governor has always been absolutely clear: never forget we work for the citizens of Montana. That's a wonderful philosophy and viewpoint.
"When I was appointed," Bucks continued, "I didn't know what to expect in working with you. I have enjoyed working with the industry, with MTA, with Mark and Diana (Koon, MTA executive director). You have been straightforward and communications have been open. There's been no game playing; everything has been up front.
"And my hat is off to the Attorney General. There is an excellent relationship between the departments of justice and revenue in both licensing and taxation. Montana has been served extraordinarily well by Mike McGrath. We have been guided wisely and well by a great public servant."
And he lauded Huntington who he said "is largely responsible" for the constructive, productive interdepartmental working relationship.
Bucks said that when he appointed Helfert to head the Liquor Division, "I told her she'd have to handle her own issues at the Legislature and she did a great job." Bucks noted Helfert is ably served by staffers Delores Stroh, Marilyn Christensen and Jason Wood, who were in attendance, as well as a host of others.
In the same vein, Bucks commended the legislators, especially those in the audience, who, "despite agreements and disagreements in a very competitive world," proved to be "dedicated, hard workers who always try to do the right thing."
Bucks said the revenue department was well on its way to "recovering from a dismal era" when "tens of millions were wasted and more millions lost" with the failure of a massive computer system known by its infamous acronym P.O.I.N.T.S.
The new system, known as IRIS, is "on time and on budget and does more than we expected it to," Bucks said. It has allowed the integration of numerous interdepartmental functions in licensing, tax and liquor administration, with electronnic forms, filing and reporting almost universally available, he said.
He noted recent legislative changes, such as allowing non-residents to own liquor licenses and to extend to small out-of-state wineries and breweries the same priviledges enjoyed by in-state producers, were mandated by court decisions and have apparently been implemented smoothly.
Bucks also said 520 applications were received to be awarded the chance to apply for one of the 124 new "cabaret" restaurant beer and wine licenses that resulted from action in the 2007 legislative session.
He pointed out that as of Sept. 12, only six actual applications had been received while a Sept. 20 deadline looms, noting that if license lottery winners don't apply or are unsuccesful, those applications drawn later in the process will move up the list.
Later, Bucks noted a wrinkle in the process will need to be ironed out. He said the drawing process was designed to give preferences to those who were already operating a bona fide restaurant and for those who had applied unsuccessfully in the past. Now, with 572 applications in the last round, it would mean all those who were unsuccessful could enter the next drawing, if there is one, with a preference, badly skewing the whole concept and assuring the preference was essentially meaningless.
Bucks indicated that problem would be addressed in the future.
When Huntington took the podium, he zeroed in on an issue that has been dogging the Legislature, regulators and licensees for better than a decade: automated reporting and accounting for the state's 17,500 gaming machines.
Rather than the expensive and impractical system initially proposed, Huntington said the Gamling Control Division instead has focused on "using what folks were already using": downloading machine play data with electronic "wands" and entering the data automatically into business computer databases.
And, instead of every machine needing to be hard-wired with new communication boards added, the new system will utilize the internet to transmit data to the state's central computer.
Huntington reported several large route vendors and independent location operators have assisted the division in developing and testing the system, which has all gone exceptionally well. Even the envisioned electronic permitting of individual machines has proven viable, he said.
He noted any operator who signed the agreements authorizing use of multi-game platforms must now make the leap to electronic reporting with a Jan. 1 deadline pending, though he said the division will be flexible in assisting licensees in the transition.
Two accounting systems have been tested and approved for use, Huntington said, and "it is time to start making your decisions" as to which approach licensees will adopt. There is also available a manual entry system on the GCD web site that may be suitable for small independents, he said.
With time running short, Helfert's comments were brief, as she thanked the roomful of licensees for their cooperation in working toward responsible retailing practices.
Staples concluded the forum, stating in reference to the recent cabaret license lotteries, "Our separate internal debates have been difficult. We tried to find a way to take the pressure off but adhere to our liquor control state.
"There were a lot of abuses in the first stages of this unrolling, through no fault of the department, the bill's sponsor, Sen. Dan Weinberg (D-Whitefish) or the MTA. Many of the 572 applications were essentially bogus. But I have complete faith the DOR will separate the wheat from the chaff. Have patience; the process will work."
Source: The Montana Tavern Times, September, 2007, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.