(1) All licensees, their agents, and employees must conduct the licensed premises in compliance with the rules of other state and local agencies and abide by all:

(a) provisions of the laws OF MONTANA and the United States related to alcoholic beverages;

(b) county and city or town ordinances related to alcoholic beverages;

(c) Indian liquor laws applicable within the areas of Indian country, as defined by 18 U.S.C. 1151, provided a tribe having jurisdiction over such area of Indian country adopted an ordinance, certified by the secretary of the interior, and published in the Federal Register; and

(d) rules of the department relating to alcoholic beverages.

(2) Proof of violation by a licensee or the licensee's agent or employee of any of the provisions of the above laws, ordinances, or rules is sufficient grounds for revocation or suspension of the license, and licensees may be reprimanded or assessed a civil penalty in accordance with 16-4-406, MCA.

(3) The department will impose progressive penalties for multiple violations of any laws, ordinances and rules within any three-year period unless mitigating circumstances indicate the penalty should be reduced, or aggravating circumstances indicate the penalty should be increased. Violations and progressive penalties include, but are not limited to, those listed on the following chart. Any combination of four of the violations listed below occurring within a three-year period could result in a license revocation action.

1st 2nd 3rd 4th

Violation Offense Offense Offense Offense

 

Sale to a $1500/20-day

Minor $250 $1000 Suspension Revocation

 

Sale to

Intoxicated $1500/20-day

Persons $250 $1000 Suspension Revocation

 

Open after $1000/12-day

Hours $150 $600 Suspension Revocation

 

Sale after $1000/12-day

Hours $150 $600 Suspension Revocation

 

Re-pouring $250 $1000 $1500/20-day

Suspension Revocation

Denial of

Right to $1000/12-day

Inspect $150 $600 Suspension Revocation

 

No Approval $1000/12-day

to Alter $300 $600 Suspension Revocation

 

No Management $1000/12-day

Agreement $150 $600 Suspension Revocation

 

Improper use

of Catering $1000/12-day

Endorsement $150 $600 Suspension Revocation

 

Accept more

than 7 Days $1500/20-day

Credit $250 $1000 Suspension Revocation

 

Extend more

than 7 Days $1500/20-day

Credit $250 $1000 Suspension Revocation

 

Undisclosed

Ownership

Interest Fine, Suspension or Revocation

 

90-Day Nonuse

Without Approval lapse

(4) The department will not consider reinstatement of a revoked license for one year from the date of revocation. In every case, reinstatement will only be allowed if:

(a) the licensee demonstrates to the department that the licensee has taken steps to insure the causes of the license revocation will be prevented from occurring in the future; and

(b) a license is available under the quota.

(5) A revoked license will affect a license quota area and the following may result:

(a) if it causes the area to be under quota, a notice of availability of a license will be published in the newspaper of general circulation in the quota area and invite applications for the available license; or

(b) if the area is over quota the revoked license will cease to be available for issuance.

(6) A revoked beer or beer and wine license issued within a city quota area before October 1997, if reinstated will not allow any gaming or gambling activity on the licensed premises.

(7) Mitigating circumstances in the case of sale to a minor could result in a reprimand for the first offense within the most current three-year period if the licensee has provided alcoholic beverage service training acceptable to the department to all of its employees and reinforces that training with each employee at least every two years. The licensee must demonstrate that the person who made the sale to a minor has completed alcoholic beverage service training prior to the department considering issuance of a reprimand.

(8) Aggravating circumstances may result in the imposition of maximum monetary penalties, maximum suspension time or revocation, and will not bind the department to the progressive penalty framework indicated in (3) .

(9) Aggravating circumstances include, but are not limited to:

(a) no effort on the part of a licensee to prevent a violation from occurring;

(b) a licensee’s failure to report a violation at the time of renewal;

(c) a licensee’s ignoring warnings issued by a regulating authority about compliance problems;

(d) a licensee’s failure to timely respond to requests during the investigation of a violation; and

(e) a violation’s significant negative effect on the health and welfare of the community in which the licensee operates.

(10) If the violation discovered is an undisclosed ownership interest, the department will consider aggravating circumstances described in (9) and mitigating circumstances such as voluntary disclosure of relevant facts in determining the appropriate penalty.

(11) Nothing in this rule prevents the department from revoking, suspending or refusing the renewal of a license if revocation, suspension or refusing renewal are expressly allowed in law or rule with reference to a prohibited act.