Bill

Bill > HB391


MT HB391

Clarify alcohol concession agreement permissible revenue structure laws


summary

Introduced
02/05/2025
In Committee
03/01/2025
Crossed Over
02/20/2025
Passed
05/01/2025
Dead
Signed/Enacted/Adopted
05/05/2025

Introduced Session

2025 Regular Session

Bill Summary

AN ACT REVISING ALCOHOL LAWS TO PROVIDE THAT A LICENSEE MAY COMPENSATE A CONCESSIONAIRE BASED ON A PERCENTAGE OF GROSS OR NET ALCOHOLIC BEVERAGE SALES; AND AMING SECTION 16-4-418, MCA.”

AI Summary

This bill modifies Montana's alcohol licensing laws by expanding the ways a licensee can compensate a concessionaire (a third-party entity serving alcoholic beverages on a licensed premises). Specifically, the bill allows licensees to compensate concessionaires based on a percentage of net alcoholic beverage sales, in addition to the existing options of gross sales percentage, employee overhead percentage, or a fixed dollar amount. The bill maintains existing requirements that licensees retain ultimate control over alcohol service, including ordering, purchasing, selling, and disciplining employees related to alcohol service. When changing compensation structures, licensees must provide the department with a copy of the amended arrangement, though the department cannot deny the arrangement if it meets legal requirements. The bill also establishes a $500 application fee for new concession agreements and a $100 annual renewal fee. Additionally, the bill clarifies that concession agreements do not constitute an ownership interest in the alcohol license and defines "contiguous premises" to include multiple floors and shared common areas in a building. The changes aim to provide more flexibility for businesses operating under alcohol concession agreements while maintaining regulatory oversight.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Chapter Number Assigned (on 05/05/2025)

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