BEFORE THE DEPARTMENT OF REVENUE
OF THE STATE OF MONTANA
In the matter of the adoption of New Rule I and amendment of ARM 42.12.312, 42.12.313, and 42.12.323 relating to special licenses and permits
TO: All Concerned Persons
1. On June 2, 2010, at 2:00 p.m., a public hearing will be held in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, at Helena, Montana, to consider the adoption and amendment of the above-stated rules.
Individuals planning to attend the hearing shall enter the building through the east doors of the Sam W. Mitchell Building, 125 North Roberts, Helena, Montana.
2. The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Revenue no later than 5:00 p.m., May 24, 2010, to advise us of the nature of the accommodation that you need. Please contact Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-3696; or e-mail firstname.lastname@example.org.
3. The proposed new rule does not replace or modify any section currently found in the Administrative Rules of Montana. The proposed new rule provides as follows:
NEW RULE I RESTAURANT BEER AND WINE SERVICE OPERATIONS
(1) All beer and wine must only be served to patrons who order food or are waiting to be seated.
(2) All beer and wine purchases must be stated on the food bill. Beer or wine may not be purchased separately.
(3) Beer or wine may not be sold, offered for sale, or given away before 11:00 a.m. or after 11:00 p.m.
(4) On-premises consumption and possession shall not be permitted before 11:00 a.m. or after 11:00 p.m. The licensee shall be responsible for removing all alcoholic beverages from patrons' possession prior to 11:00 p.m., in order to comply with this provision.
(5) Beer and wine may not be sold for off-premises consumption.
AUTH: 16-1-303, MCA
IMP: 16-4-420, MCA
REASONABLE NECESSITY: The department is proposing to adopt New Rule I to enhance the liquor licensee's and the public's understanding of the service operations of restaurant beer and wine licenses in Montana.
4. The rules proposed to be amended provide as follows, stricken matter interlined, new matter underlined:
42.12.312 LIQUOR MANUFACTURER'S LICENSE (1) Any person or corporation, licensed to operate under the provisions of the laws of the United States, may apply to the department for a license to engage in the manufacture of liquor in the state of Montana.
The application must be accompanied by a $600 license fee, to be paid annually upon renewal of the license. The applicant shall submit satisfactory evidence of good moral character and that he the applicant is qualified to operate under the laws of the United States.
(2) remains the same.
AUTH: 16-1-303, MCA
IMP: 16-1-201, 16-4-312, 16-4-501, MCA
REASONABLE NECESSITY: The department is proposing to amend ARM 42.12.312 by removing the license fee because the fee is included in 16-4-501, MCA, and it is not necessary to duplicate the fee in an administrative rule.
42.12.313 PUBLIC WINE OR BEER TASTINGS (1)
Wine Beer or wine tastings must be conducted by a an on-premises consumption retail licensee, special permittee, or catering permittee.
(2) In no case can a wine distributor, a beer wholesaler, a winery/wine importer or a brewer/beer importer sponsor a wine or beer tasting other than at:
(a) a licensed retail premises that permits on-premises consumption except for
or other than a domestic winery as allowed under 16-3-411, MCA; or
(b) a brewery as allowed under 16-3-213, MCA.
(3) A wine distributor, a beer wholesaler, a wine importer, or a beer importer sponsoring a tasting:
(a) must purchase the products to be used for the tasting from the on-premises consumption retail licensee at the ordinary retail price; and
(b) can participate only by providing advice or information about the products sampled.
(4) A winery or brewer sponsoring a tasting is required to comply with (3). In addition, the winery or brewer can participate in serving the product.
(5) An off-premises retail licensee may only participate in a wine tasting conducted by an on-premises consumption retail licensee by providing advice or information about the products being sampled. The off-premises consumption licensee may take orders for products to be picked up and paid for at the off-premises consumption licensee's premises.
(6) All beer and wine provided to the public at a tasting conducted by an on-premises consumption licensee must be purchased by the on-premises consumption retail licensee from a licensed distributor, wholesaler, brewery, or winery. Beer and wine must be served by the on-premises consumption licensee with the exception of beer and wine manufactures. Beer or wine may not be provided by another retail licensee.
(3)(7) This rule shall not apply to beer or wine tastings which are held in a private home wherein no consideration, remuneration, contribution, donation, gift, or any other money or thing of value is solicited or charged for entry or attendance and which do not violate the provisions of 16-6-306, MCA.
AUTH: 16-1-303, MCA
IMP: 16-3-213, 16-3-411, 16-4-105, 16-6-306, MCA
REASONABLE NECESSITY: The department is proposing to amend ARM 42.12.313 to increase the understanding by liquor licensees and the public on how and where beer and/or wine tastings may be conducted. Wine and/or beer tastings conducted at on-premises consumption establishments and breweries are allowed according to the law. The rule outlines how table wine distributors, beer wholesalers, and off-premises retailers can be involved in the tastings. The department had past violation cases where off-premises retailers stated that the rules were not clear on this subject matter. The department has made a good faith effort to respond to the complaint.
Section (1) outlines that only on-premises consumption retail licensees can conduct tastings.
Section (2) adds the provision that brewers are allowed to provide beer tastings under 16-3-213, MCA.
Section (3) addresses those allowed to sponsor the tastings must purchase the beer and/or wine from the on-premises licensee but may not pay more than the normal price.
In addition, the rule outlines that those allowed to sponsor the tasting can only provide advice or information about the product. Only wineries and brewers are allowed to serve the product. Distributors and wholesalers are not allowed to assist in serving of the product.
Section (5) addresses off-premises licenses can only participate in the tasting by providing advice or information on the samples. They may take orders, but the orders must be picked up and paid for at the off-premises licensed location.
Section (6) states that all products at the tasting must be purchased by the on-premises licensees from a licensed distributor, wholesaler, brewer, or winery.
Section (7) adds "beer" to the language to make it consistent for all the sections in this rule.
42.12.323 PERMISSIBLE AND PROHIBITED SPECIAL PERMIT ACTIVITIES
(1) remains the same.
(2) A special event may only last for a maximum of three days except that each permit holder may have one special event per year that last up to seven days for a fair if it is a county, state, or regional fair that occurs no more than once per year, is held on a publicly-owned fairgrounds, and is officially sanctioned by a government entity.
(2) through (4) remain the same but are renumbered (3) through (5).
AUTH: 16-1-303, MCA
IMP: 16-3-103, 16-3-241, 16-4-301, MCA
REASONABLE NECESSITY: The department is proposing to amend ARM 42.12.323 to ensure consistent and equitable treatment of liquor control laws by adding parameters for a special permit and the length of a special event. Without parameters a special event could in fact be a season; for example, the summer. These permits were established to allow for the sale of alcohol on an unlicensed premises for a designated official event.
5. Concerned persons may submit their data, views, or arguments, either orally or in writing, at the hearing. Written data, views, or arguments may also be submitted to: Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-4375; or e-mail email@example.com and must be received no later than June 11, 2010.
6. Cleo Anderson, Department of Revenue, Director's Office, has been designated to preside over and conduct the hearing.
7. An electronic copy of this Notice of Public Hearing is available through the department's site on the World Wide Web at www.mt.gov/revenue, under "for your reference"; "DOR administrative rules"; and "upcoming events and proposed rule changes." The department strives to make the electronic copy of this Notice of Public Hearing conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the department strives to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.
8. The Department of Revenue maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request, which includes the name and e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notices regarding particular subject matter or matters. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the person in 5 above or faxed to the office at (406) 444-4375, or may be made by completing a request form at any rules hearing held by the Department of Revenue.
9. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.
/s/ Cleo Anderson /s/ Dan R. Bucks
CLEO ANDERSON DAN R. BUCKS
Rule Reviewer Director of Revenue
Certified to Secretary of State April 19, 2010