House Bill No. 604

Introduced By harper, rose, grady, ellis, keenan, ream, jenkins, peck, ohs, rehbein, zook, mccann, gage

A Bill for an Act entitled: An Act relating to brewing beer in Montana; providing that malting barley machinery and equipment are classified as class 6 property; authorizing home brewing that meets the requirements of federal law; and amending sections 15-6-136, 16-3-201, and 16-6-301, MCA.

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 15-6-136, MCA, is amended to read:

"15-6-136.  Class six property -- description -- taxable percentage. (1) Class six property includes:

(a)  livestock and other species of domestic animals and wildlife raised in domestication or a captive environment, except for cats, dogs, and other household pets not raised for profit;

(b)  items of personal property intended for rent or lease in the ordinary course of business, provided each item of personal property satisfies all of the following:

(i)  the full and true value of the personal property is less than $5,000;

(ii) the personal property is owned by a business whose primary business income is from rental or lease of personal property to individuals wherein no one customer of the business accounts for more than 10% of the total rentals or leases during a calendar year; and

(iii) the lease of the personal property is generally on an hourly, daily, or weekly basis; and

(c)  machinery and equipment used in canola seed oil processing facilities if:

(i)  the operators of such facilities employ a minimum of 15 full-time employees; and

(ii) a canola seed oil processing facility locates in the state of Montana after July 25, 1989; and

(d) machinery and equipment used in a malting barley facility.

(2)  "Canola seed oil processing facility" means a facility that:

(a)  extracts oil from canola seeds, refines the crude oil to produce edible oil, formulates and packages the edible oil into food products, or engages in any one or more of those processes; and

(b)  employs at least 15 employees in a full-time capacity.

(3) "Malting barley facility" means a facility and integral machinery and equipment used principally to malt malting barley and includes machinery and equipment to mix, blend, transport, transfer, or process the barley and malt at the facility.

(3)(4)  Class six property is taxed at 4% of its market value."

Section 2.  Section 16-3-201, MCA, is amended to read:

"16-3-201.  Possession, manufacture, importation, or disposal of beer in manner other than prescribed unlawful -- personal brewing. (1) It shall be is unlawful to manufacture, import, sell or dispose of, or possess for the purpose of sale beer of any kind or character of an alcoholic content greater than herein prescribed authorized or other than in the manner permitted by this code.

(2) This code does not prohibit the manufacture of beer, for personal or family use and not intended for sale, that meets the exemptions of 26 U.S.C. 5053(e) and regulations implementing that section, including the brewing of beer, for personal or family use, on premises other than those of the person brewing the beer."

Section 3.  Section 16-6-301, MCA, is amended to read:

"16-6-301.  Transfer, sale, and possession of alcoholic beverages -- when unlawful. (1) Except as provided by this code, no a person or the person's agents or employees shall may not, within the state, by himself, his clerk, servant, or agent,:

(a) expose or keep an alcoholic beverage for sale or,;

(b) directly or indirectly or upon any pretense or upon any device, sell or offer to sell an alcoholic beverage; or,

(c) in consideration of the purchase or transfer of any property or for any other consideration or at the time of the transfer of any property, give to any other person any an alcoholic beverage.

(2)  No A person shall may not have or keep any alcoholic beverage which that has not been purchased within the state of Montana.

(3) Nothing in this code shall This section does not prohibit:

(a) any a person entering this state from any other another state or from any foreign country from having in his the person's possession an amount not to exceed 3 wine gallons of alcoholic beverage which beverage shall have been that was purchased in another state or foreign country, but no person claiming to have so entered the state shall at any time have in his possession more than 3 wine gallons of alcoholic beverage which shall not have been purchased within the state of Montana.;

(b) possession of beer produced for personal or family use and not intended for sale that meets the exemptions of 26 U.S.C. 5053(e) and regulations implementing that section, including the brewing of beer, for personal or family use, on premises other than those of the person brewing the beer;

(c) This subsection shall not apply to the department or to the keeping or having of possession of alcoholic beverages by brewers, distillers, and other persons duly licensed by the United States for the manufacture of such those alcoholic beverages; or

(d) to the keeping or having of any possession of proprietary or patent medicines or of any extracts, essences, tinctures, or preparations where such having and keeping if the possession is authorized by this code.; or

(3)(e)  Nothing contained in this section shall apply to the possession by a sheriff or his bailiff of alcoholic beverages seized under execution or other judicial or extrajudicial process or to sales under executions or other judicial or extrajudicial process to the department or a licensee.

(4)  Except as provided in this code, no a person or the person's agents or employees shall, within the state, by himself, his clerk, servant, or agent may not:

(a)  attempt to purchase any alcoholic beverage;

(b)  directly or indirectly or upon any pretense or device, purchase any alcoholic beverage; or

(c)  in consideration of the sale or transfer of any property or for any other consideration or at the time of the transfer of any property, take or accept from any other person any alcoholic beverage."

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