_____________ bill NO. _____________

INTRODUCED BY _________________________________________________

By Request of the Department of Revenue

A BILL FOR AN ACT ENTITLED: "AN ACT REVISING ALCOHOL LAWS TO PROHIBIT the PROSPECTING OF CERTAIN RETAIL ALCOHOLIC BEVERAGE LICENSES; REQUIRING 1 YEAR of USE PRIOR TO TRANSFERRING A LICENSE; PROVIDING EXCEPTIONS IN THE EVENT OF DEATH OR CIRCUMSTANCES REASONABLY BEYOND THE CONTROL OF THE LICENSEE; AMENDING SECTION 16-4-417, MCA; and PROVIDING AN IMMEDIATE EFFECTIVE DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. License operation requirements. (1) A licensee under 16-4-104, 16-4-201, 16-4-204, or 16-4-420 shall:

(a)        commence operating the license on issuance of the license from the department, unless the licensee was approved for a license without a premises under 16-4-417; and

(b)        operate the license for 1 year prior to transferring the license to another person or business entity unless that transfer is due to a death of an owner.

(2)        Failure to comply with the provisions of subsection (1) subjects the licensee to license revocation.

Section 2. Section 16-4-417, MCA, is amended to read:

"16-4-417. Approval of a licensee without premises. (1) If an applicant has a license available to obtain under 16-4-104, 16-4-201, 16-4-204, or 16-4-420 but does not have a premises, the department may approve the applicant without approving the premises. The department shall issue the license if all other requirements of this code related to an applicant are met.

(2)        A license issued under subsection (1) must be immediately put on nonuse status until a premises is approved by the department and may not be transferred to another person or business entity prior to approval of the premises unless that transfer is due to a death of an owner or was reasonably beyond the control of the licensee. Upon On issuance of the license under this section, the licensee shall apply for a premises within 6 months and must have the premises approved within 1 year from issuance of the license. After approval of the premises, a licensee shall operate the license for 1 year prior to transferring the license to another person or business entity unless that transfer is due to a death of an owner. A licensee shall pay all licensing fees annually even if the premises has not been approved. The department may establish nonuse license fees for a license issued under this section."

NEW SECTION. Section 3. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 16, chapter 4, part 4, and the provisions of Title 16, chapter 4, part 4, apply to [section 1].

NEW SECTION. Section 4. Effective date. [This act] is effective on passage and approval.