Senate Bill No. 354

Introduced By _______________________________________________________________________________



A Bill for an Act entitled: "An Act establishing a restaurant beer and wine license to allow restaurants to serve beer and wine; prohibiting a restaurant beer and wine licensee from holding any other type of beer, wine, or liquor license; exempting restaurant beer and wine licenses from the quota system; providing that restaurant beer and wine licenses are nontransferable; prohibiting gaming and gambling in conjunction with a license, other than an all-beverages license, to sell alcoholic beverages for consumption on premises not originally licensed prior to the effective date of this act; and amending sections 23-5-306, 23-5-502, 23-5-603, and 23-5-611, MCA."



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



NEW SECTION. Section 1.  Restaurant beer and wine license. (1) The department shall issue a restaurant beer and wine license whenever:

(a)  the applicant is otherwise qualified to possess a beer and wine license;

(b)  the applicant operates a restaurant at the location where the restaurant beer and wine license will be used or satisfies the department:

(i)  that the applicant intends to open a restaurant that will meet the requirements of subsection (2) and intends to operate the restaurant so that at least 75% of the restaurant's gross income during its first year of operation is expected to be the result of the sale of food; and

(ii) that the restaurant beer and wine license will be used in conjunction with that restaurant;

(c)  the applicant understands that this license prohibits the applicant from being licensed to conduct any gaming or gambling activity or operate any gambling machines and that if any gaming or gambling activity or machine exists at the location where the restaurant beer and wine license will be used, the activity must be discontinued or the machines must be removed before the restaurant beer and wine license takes effect;

(d)  the owner of an existing all-beverages, beer, wine, or beer and wine license agrees to sell any existing license before the restaurant beer and wine license takes effect; and

(e) the applicant does not hold any other retail license for the sale of beer, wine, or any other alcoholic beverages.

(2)  For purposes of this section, "restaurant" means a public eating place where individually priced meals are prepared and served for on-premises consumption. At least 75% of the restaurant's annual gross income from the operation must be from the sale of food and not from the sale of alcoholic beverages. The restaurant must have a dining room, a kitchen, and the number and kinds of employees necessary for the preparation, cooking, and serving of meals in order to satisfy the department that the space is intended for use as a full-service restaurant.

(3)  A restaurant beer and wine license is not transferable and may not be sold by a licensee.

(4)  The department shall issue a restaurant beer and wine license to a qualified applicant regardless of the number of beer and wine licenses already issued within a beer license quota area in which the restaurant is located.

(5)  Under a restaurant beer and wine license, beer and wine may not be sold for off-premises consumption.

(6) An application for a restaurant beer and wine license must be accompanied by a fee of $1,000. The annual fee for a restaurant beer and wine license is $300.

(7)  Possession of a restaurant beer and wine license is not a qualification for licensure of any gaming or gambling activity. A gaming or gambling activity may not occur on the premises of a restaurant with a restaurant beer and wine license.



NEW SECTION. Section 2.  Appropriate alcoholic beverage license for gaming or gambling. (1) Gaming or gambling may be conducted on premises with retail all-beverages licenses issued under 16-4-201 but may not be conducted on premises that are originally licensed after [the effective date of this act] under any other provision of law to sell alcoholic beverages for consumption on the premises. The transfer or renewal of a license in conformance with the provisions of this title does not constitute the new issuance of a license, and premises operating under a license originally issued prior to [the effective date of this act] may, subject to the provisions of Title 23, chapter 5, have gaming or gambling conducted on the premises.

(2) All licenses to sell alcoholic beverages for consumption on the premises, other than all-beverages licenses issued under 16-4-201, that are issued after [the effective date of this act] must have a conspicuous notice that the license may not be used for premises where gaming or gambling is conducted.



Section 3.  Section 23-5-306, MCA, is amended to read:

"23-5-306.   Live card game table -- permit -- fees -- disposition of fees. (1) (a) A person who has been granted an operator's license under 23-5-177 and a who holds an appropriate license to sell alcoholic beverages for consumption on the premises as provided in [section 2] may be granted an annual permit for the placement of live card game tables.

(b)  The department may issue an annual permit for the placement of live card game tables to a person operating a premises not licensed to sell alcoholic beverages for consumption on the premises if:

(i)  one or more live card game tables were legally operated on the premises on January 15, 1989;

(ii) the premises were licensed on January 15, 1989, to sell food, cigarettes, or any other consumable product;

(iii) the person has been granted an operator's license under 23-5-177; and

(iv) at the time of application for the permit:

(A)  the person has continuously operated a live card game table on the premises since January 15, 1989; and

(B)  the natural person or persons who own the business operated on the premises are the same as on January 15, 1989.

(2)  The annual permit fee in lieu of taxes for each live card game table operated in a licensed operator's premises may not be prorated and must be:

(a)  $250 for the first table; and

(b)  $500 for each additional table.

(3)  The department shall retain for administrative purposes $100 of the fee collected under this part for each live card game table.

(4)  The department shall forward on a quarterly basis the remaining balance of the fee collected under subsection (2) to the treasurer of the county or the clerk, finance officer, or treasurer of the city or town in which the live card game table is located for deposit to the county or municipal treasury. A county is not entitled to proceeds from fees assessed on live card game tables located in incorporated cities and towns within the county. The local government portion of this fee is statutorily appropriated to the department, as provided in 17-7-502, for deposit to the county or municipal treasury."



Section 4.  Section 23-5-502, MCA, is amended to read:

"23-5-502.   Sports pools and sports tab games authorized -- tax. (1) Conducting or participating in sports pools and sports tab games as defined and governed in this part is lawful, except that:

(a)  sports tab games may only be conducted only on premises appropriately licensed to sell alcoholic beverages for consumption on the premises as provided in [section 2]; and

(b)  only a licensee of premises that are located in an incorporated city or town with a population of less than 100 or located outside the boundaries of an incorporated city or town and that are appropriately licensed to sell alcoholic beverages for consumption on the premises under [section 2] may conduct a race between animals and conduct one or more sports pools on the race. The race may be conducted only if it is between pigs, gerbils, or hamsters and is conducted on the premises but outside of interior areas of the establishment where food and beverages are usually stored, prepared, or served.

(2)  A manufacturer licensed under 23-5-115 who sells sports tabs to a licensed operator for use in a sports tab game shall collect from the operator, at the time of sale, a tax of $1 for each 100 sports tabs sold and, within 15 days after the end of each calendar quarter, submit to the department any forms required by the department and the proceeds of the collected tax. The manufacturer shall keep a record of taxes collected as required by department rule. The records must be made available for inspection by the department upon request of the department. The department shall retain the proceeds of the tax to administer this part."



Section 5.  Section 23-5-603, MCA, is amended to read:

"23-5-603.   Video gambling machines -- possession -- play -- restriction. (1) A licensed operator may make available for public play only the number of approved video gambling machines specifically authorized by this part.

(2)  The video gambling machines specifically authorized by this part are bingo, keno, and draw poker machines. Only the number of approved machines for which permits have been granted under 23-5-612 may be made available for play by the public on the premises of a licensed operator. The department shall adopt rules allowing a video gambling machine that needs repair to be temporarily replaced while it is being repaired with a video gambling machine that is approved under the permit provisions of this part. A fee may not be charged for the replacement machine.

(3)  Machines on premises appropriately licensed to sell alcoholic beverages for on-premises consumption as provided in [section 2] must be placed:

(a)  in a room, area, or other part of the premises in which alcoholic beverages are sold or consumed; and

(b)  within control of the operator for the purpose of preventing access to the machines by persons under 18 years of age."



Section 6.  Section 23-5-611, MCA, is amended to read:

"23-5-611.   Machine permit qualifications -- limitations. (1) (a) A person who has been granted an operator's license under 23-5-177 and a who holds an appropriate license to sell alcoholic beverages for consumption on the premises as provided in [section 2] may be granted a permit for the placement of video gambling machines in his on the person's premises.

(b)  If video keno or bingo gambling machines were legally operated on a premises on January 15, 1989, and the premises were not on that date licensed to sell alcoholic beverages for consumption on the premises or operated for the principal purpose of gaming and there is an operator's license for the premises under 23-5-177, a permit for the same number of video keno or bingo gambling machines as were operated on the premises on that date may be granted to the person who held the permit for such machines on those premises on that date.

(c)  A person who legally operated an establishment on January 15, 1989, for the principal purpose of gaming and has been granted an operator's license under 23-5-177 may be granted a permit for the placement of bingo and keno machines in his on the person's premises.

(2)  An applicant for a permit shall disclose on the application form to the department any information required by the department consistent with the provisions of 23-5-176.

(3)  A licensee may not have on the premises or make available for play on the premises more than 20 machines of any combination."



NEW SECTION. Section 7.  Codification instruction. [Sections 1 and 2] are intended to be codified as an integral part of Title 16, and the provisions of Title 16 apply to [sections 1 and 2].

-END-