Convention speakers provide expertise
By Paul Tash
Montana Tavern Times
The many attendees to the general session of the 2011 Montana Tavern Association convention last month in Red Lodge received plenty of good information on a variety of tavern-related subjects from key players in state government.
The Sept. 14 session featured remarks from Attorney General Steve Bullock, Public Service Commission Chairman Travis Kavulla, other state regulators including Liquor Control Administrator Shauna Helfert and Gambling Control Administrator Rick Ask, as well as state Sen. Jason Priest, state Rep. Joanne Blyton, and Red Lodge Mayor Brian Roat.
MTA government affairs counsel Mark Staples served as moderator, introducing the speakers to the well-attended session and encouraging those in attendance to ask questions of the regulators.
“This is your chance to talk to the people who regulate the business you're in,” Staples said.
In introducing Bullock, Staples mentioned that Montana's attorney generals are regular attendees of MTA conventions. “That's saying something,” he said. “They don't have to come. We're not their biggest constituency, but they treat us like we're just as important as any other.”
Bullock, who is running for governor, then took the podium and told the crowd that he appreciated “the opportunity to be here – it's good to be among friends.”
He said he recognizes that many tavern businesses are still suffering in the poor economy.
“I know it's been a long haul for businesses and workers,” he said, adding that although gaming revenues have shown some improvement recently, “we still have a ways to go.”
Bullock mentioned a couple measures that “have the potential” to help the gaming industry.
He said HB127, a bill coming from the Gaming Advisory Council and passed by the recent Legislature, will help the commercial live bingo industry, which has suffered declining revenues for the last 10 years. The new law increases the maximum bet to $800 per card, which allows operators “to compete with the tribes.”
HB127 also allowed the GCD to create by rule a “stale date” for redeeming winning ticket vouchers. With input from the gaming representatives, the GCD has since created and approved a new rule giving players 48 hours from the time they print a winning ticket to redeem it for cash (no expiration date had existed before). Operators must print the new stale-date language on the ticket itself and on signage.
The rule goes into effect Oct. 1, Bullock said, adding that operators have the discretion of cashing the ticket after 48 hours.
Bullock also touted the potential of SB361, the measure allowing video line games that the 2011 Legislature also passed.
“It's the first new video game to be allowed in the state of Montana since 1985, when the video poker act passed,” he said.
The effective date is Jan. 1, which allowed “our shop to put all the rules together” and to give gaming machine manufacturers time “to design, develop and submit (line games) to the division for approval.”
“The division drafted the rules,” Bullock said. “They've been approved, and we're now waiting for the manufacturers to submit their games for testing.”
Lastly, Bullock said state regulators have worked in other areas to streamline the application process and improve efficiencies.
For example, he said the state has simplified to a one-page form the application for a license transfer between owners in such instances as divorce and inheritance.
Another example, he said, was the development of a short form for licensees to report a change in the entity type (partnership to LLC, for example) or a change in the ownership type.
“I think we've worked hard to fairly and evenly regulate your businesses.”
Staples then thanked Bullock for his efforts and said MTA's relationship with the Attorney General's Office “has been excellent.”
Gambling Control
Speaking next was Gambling Control Administrator Rick Ask, who provided an update on the line game progression.
“We are fully prepared for the development, submission, testing, approval, and rollout of line games,” he said. “We need to make sure the games get out there ahead of time, but don't come online before Jan. 1.”
He said each machine will have a security mechanism that can be switched to allow the line games to be operational Jan. 1.
“We anticipated, I think, most everything that can be anticipated at this point … for the games to be delivered and ready for play on Jan. 1.”
He then was asked by Staples to clarify the rules for football boards and pools, which are prevalent this time of year.
Ask said the maximum wager on a sports pool board is $5 and the maximum payout is $500 per game.
Responding to a question by John Hayes about the state's approach to illegal internet gambling, Ask said the focus “for the division as a law enforcement agency” is to target the providers of internet gambling, which remains illegal in Montana.
“We don't have the resources, nor the disposition, to kick in people's doors to find somebody in his basement on the internet (playing) an illegal game.”
He said department investigators do participate in multi-state operations “intended to bring down internet gambling operators.”
Ask added that “where we go in the future” regarding internet gambling depends on the Legislature, the governor, and the attorney general.
In fact, Ask said, “what I've suggested to the Gaming Advisory Council is, through this interim, we do a full and complete study of internet gaming.”
The study would help identify “options and preferences” on how the state should handle internet gambling in the future, Ask said, and could result in a recommendation from the council in the form of legislation for the next session.
“I thought it would be a good time (to do this),” he said, “because it does impact folks in (Montana) a great deal.”
Liquor Control
Up next was Shauna Helfert, administrator for the Liquor Control Division, who Staples said has done a “terrific job.” He added that the MTA maintains a “great partnership” with, and has “great respect” for her department.
Helfert first thanked the MTA members “for your professionalism and cooperation when you deal with the department.”
“Administering liquor laws in a fair, consistent manner often times can be a challenge,” she said, “and I just really appreciate the respectful relationship that you have with us.”
Helfert also praised the industry for its social responsibility.
“I know you do an excellent job of … making sure that the only folks who are getting alcohol are those adults who choose to drink it responsibly,” she said. “That really says great things about you. You really want to keep our communities safe.”
She said the LCD wants to “make sure we provide what you need to help you do your business better,” adding that licensees are encouraged to contact the division with concerns or suggestions.
“Help us help you,” she said. “We want to make your life easy.”
Helfert then reviewed a few legislative actions, focusing mainly on the new mandatory server training law, which requires all sellers and servers of alcohol in Montana to be trained within 60 days of hire and every three years thereafter.
She encouraged servers and sellers to get trained by the Oct. 1 deadline, but said, “We won't walk through your establishment and have you show us the (training) certificates.”
Helfert added that licensees should not send their employees' training certificates to her department, but to “keep them for your own records.”
The only time the LCD will request a copy of a training certificate is if the licensee is cited for sales to a minor or sales to an intoxicated person.
“Then we will ask to make sure that server has been trained,” she said.
Following a question from the floor about whether employers could be sued for wrongful discharge if they fire an employee for not being trained, Helfert deferred to Staples.
Because the Montana law puts the responsibility of training on the licensee, not the employee, Staples said he believes employers can mandate that server training is a condition of employment, “which I would advise you to do since it's a condition of your licensure.”
Then if an employee breaks that known condition of employment, he said he believes they can be legally discharged.
In other LCD news, Helfert said her department is developing rules for other passed legislation, including SB215, which allows for the reduction in the markup on some products. Manufacturers that produce less than 25,000 gallons of distilled spirits will be allowed a reduction in the markup on their products from the current 40 percent to 20 percent. The new law will “significantly change” the prices for about 16 to 20 products, she added.
Helfert said the department is also developing rules regarding the approved SB203, which allows licensees to sell growlers to go for off-premise consumption.
Service Commission
Staples then introduced Travis Kavulla, chairman of the Public Service Commission.
“I believe this is a first for the Montana Tavern Association to have the chairman of the Public Service Commission with us,” Staples said.
At Staples' request, Kavulla addressed the legality of efforts by local tavern associations, particularly the Cascade County and Missoula County tavern associations, who are unhappy with local taxi service and want to develop their own voluntary and non-profit transportation service for patrons who may need a ride home.
The PSC does regulate taxis, Kavulla said, and does accept complaints.
“If they refuse to carry passengers, if you don't think they're charging the right fares, if there's a problem in the quality of service, such as response times, I would certainly welcome you to contact the Public Service Commission,” he said.
Taxis are allowed to operate as monopolies, or near monopolies, he said, and for that privilege they must meet certain requirements and regulations. As for the question posed about voluntary non-profit shuttles, Kavulla said, “Technically there appears to be an exemption” in the law for non-profit motor carriers, which would allow local tavern associations to operate their own service to get patrons home and “avoid the stringent PSC regulation.”
Kavulla said that exemption is the opinion of a staff lawyer, and the official ruling will come following a public comment period not yet scheduled.
At the conclusion of the general session, Staples acknowledged and praised the legislative work of longtime MTA member and former legislator Harry Klock, whose term has expired.
“He's the real deal,” Staples said of Klock. “Thank you, Harry.” Klock received a rousing standing ovation.
Several other local and state officials were acknowledged during the general session, including local lawmakers Sen. Jason Priest and Rep. Joanne Blyton, as well as former state Sen. Jesse Lazlovich, chief legal counsel for the auditor's office.
Sen. Priest and Rep. Blyton spoke of their respect for the MTA's “small businesses” and their contributions to the state and local economies.