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(1) Concession agreements, authorized under 16-4-418, MCA, are written agreements that provide the terms where a licensee extends its licensed premises into the concessionaire's business for the purpose of selling and serving the licensee's alcoholic beverages to the concessionaire's customers. A concession agreement may only be entered if the premises suitability requirements in ARM 42.12.145 are met.

(2) All new concession agreements must be submitted to the department for review and approval prior to their execution or effective date, and must include the following:

(a) a completed concession agreement request form provided by the department and the one-time processing fee described in ARM 42.12.111;

(b) a copy of the proposed floor plan;

(c) any additional documentation the department deems reasonably necessary to approve the concession arrangement; and

(d) a completed alteration request form if the concessionaire's area will change the licensee's current floor plan that is on file with the department.

(3) The concession agreement must provide that licensee and concessionaire agree:

(a) the licensee may operate in the concessionaire's area;

(b) the parties may share employees. In the event of shared employees, the licensee must retain the right to discipline or otherwise sanction any employee in relation to the service of alcoholic beverages;

(c) on the compensation to be paid for shared employees. The compensation may not be based on a percentage of alcoholic beverage sales;

(d) except for concessionaires who have been approved by the department as a location manager, alcoholic beverages may not be ordered, purchased, or received by the concessionaire;

(e) the licensee may terminate the agreement without cause;

(f) the proceeds from the sale of alcoholic beverages are the property of the licensee; and

(g) any proceeds of alcoholic beverages sales that are collected by the concessionaire must be returned to the licensee not less than every two weeks.

(4) The department, upon receipt of the concession agreement and any supporting documentation, will advise the licensee of approval or denial of the agreement unless further documentation or an audit review is necessary. Upon approval of the agreement, the license will reflect language that the licensee is also serving alcoholic beverages in the establishment.

(5) Upon approval of the agreement, the license will reflect language that the licensee is also serving alcoholic beverages in the establishment. The concessionaire shall display in a prominent place, a copy of the license and a placard, issued by the department, stating the consequences for violations of the alcoholic beverage code by persons under 21 years of age.

(6) A licensee must submit any modification or assumption of an existing concession agreement for review and approval by the department. The concessionaire may continue to operate the business pending approval by the department.


History: 16-1-303, 16-4-418, MCA; IMP, 16-3-305, 16-3-311, 16-4-401, 16-4-402, MCA; NEW, 2003 MAR p. 21, Eff. 1/17/03; AMD, 2004 MAR p. 1972, Eff. 8/20/04; AMD, 2012 MAR p. 1846, Eff. 9/21/12; AMD, 2017 MAR p. 493, Eff. 4/29/17; AMD, 2020 MAR p. 1177, Eff. 6/27/20.

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