The Department of Revenue will hold a public hearing on the proposed amendment to the liquor violation rules on September 30th at 1:30 PM in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building located at 125 North Roberts, Helena, Montana.
Big changes:
- New rules add in Concessionaires and agents or employees of the Concessionaires. Previously the rules just talked about the Licensee, Licensee’s agents, and Licensee’s employees.
- New rules would allow the Department to terminate a concession agreement.
- Department shall use a point-based penalty system for the proposed violations. The points for suspension/revocation use a three-year look back period.
- The point-based penalty system assigns points between 1 and 5 with violations that cause the most public harm receiving 5 points per violation.
Points:
- 15-19 – Department may propose a suspension not to exceed 30 days.
- 20-24 – Department may propose a suspension not to exceed 60 days.
- 25-29 – Department may propose a suspension not to exceed 90 days.
- > 30 Department may seek revocation of license or revocation of concession agreement, or both.
For violations that are ongoing and not resolved by the payment of a monetary penalty or imposition of a suspension, the department may revoke the license or concession agreement, or both, in addition to other penalties authorized by Montana law. Ongoing violations that are not resolved include, but are not limited to:
- Failure to submit a completed application to obtain department approval of a new owner.
- Failure to prepare and submit Alteration Request.
- Failure to pay annual license renewal fee or license fee.
- Failure to electronically submit a completed alcohol beverage tax return or pay alcoholic beverage taxes, or both.
Department may enter into informal negotiations.
| Violation |
Points |
Monetary Penalty |
| Sold Alcoholic Beverages to an Underage Person |
5 |
$1,500 |
| Sold Alcoholic Beverages to an Intoxicated Person |
5 |
$1,500 |
| Denied Inspection of Premises |
5 |
$1,500 |
| Denied Inspection of Records |
5 |
$1,500 |
| Entered into a Concession Agreement without Department Approval |
5 |
$1,500 |
| Failed to Seek Prior Department Approval of a New Owner Pursuant to 16-4-401, MCA | 5 |
$1,500 |
| Sold/Served Alcoholic Beverages at an Unlicensed Location | 5 |
$1,500 |
| Stored Alcoholic Beverages at a Location Not Approved by the Department | 4 |
$1,200 |
| Delivered Alcoholic Beverages to a Retailer at an Unlicensed Location | 4 |
$1,200 |
| Failed to Ensure Licensee, Employee, or Employee’s Immediate Supervisor Possess Valid Responsible Sales and Service Proof of Training Document | 4 |
$50 (1st) $200 (2nd) $350 (3rd +) |
| Failed to Notify the Department or Local Law Enforcement Before Implementing an Access Control System | 4 |
$1,200 |
| Sold/Served Alcoholic Beverages After Hours | 4 |
$1,200 |
| Allowed Alcoholic Beverages to Be Consumed After Hours | 4 |
$1,200 |
| Sold Alcoholic Beverages Not Approved by the Department | 4 |
$1,200 |
| Sold Beer or Wine to the Public (Distributor/Wholesaler) | 4 |
$1,200 |
| Allowed the Self-Service of an Alcoholic Beverage on the Premises | 4 |
$1,200 |
| Failed to Seek Approval of a Location Manager | 4 |
$1,200 |
| Refilled Liquor Bottles | 4 |
$1,200 |
| Failed to Maintain an Active Participation in the Business | 3 |
$900 |
| Exceeded Sample Room Service Limits | 3 |
$900 |
| Served Alcoholic Beverages Not Manufactured on the Premises | 3 |
$900 |
| Failed to Report New Officers or Board Members | 3 |
$900 |
| Catered an Event Without Notifying Local Law Enforcement | 3 |
$900 |
| Failed to Timely Seek Approval of a Location Manager | 2 |
$600 |
| Catered an Event More Than 100 Miles From the Licensee’s Premises | 2 |
$600 |
| Catered an Event Without a Sponsor or Agreement in Place | 2 |
$600 |
| Catered an Event Longer Than Allowed in ARM 42.12.128 | 2 |
$600 |
| Altered the Premises Without Approval | 2 |
$600 |
| Failed to Maintain Possessory Interest in the Premises | 2 |
$600 |
| Allowed Unapproved Individuals to Participate in Profits or Losses of the Business | 2 |
$600 |
| Served Beer or Wine to a Patron Who Did Not Order Food (RBW) | 2 |
$600 |
| Operated Premises With More Seats Than Licensed (RBW) | 2 |
$600 |
| Failed to Meet the 65% Annual Gross Income Food Requirement (RBW) | 2 |
$600 |
| Accepted More Than 7 Days Credit (Retailer) | 2 |
$600 |
| Extended More Than 7 Days Credit(Distributor/Wholesaler) | 2 |
$600 |
| Allowed Consumption of Alcoholic Beverages on Premises Not Sold or Provided by the Licensee | 2 |
$600 |
| Shipped Table Wine to Consumers Without a Direct Shipping Endorsement | 2 |
$600 |
| Failed to Maintain at Least Twelve Seats, Exclusive of any Seats at Gambling Machines | 2 |
$600 |
| Failed to Submit or Timely Submit an Abbreviated Application for License Modification Pursuant to ARM 42.12.118 | 1 |
$300 |
| Failed to Comply With Approved Loan Standards | 1 |
$300 |
| Failed to Seek Department Approval for a Non-institutional Lender | 1 |
$300 |
| Failed to Submit or Failed to Timely Submit Monthly Catering Reports | 1 |
$300 |
| Sold Liquor at Less Than Posted Price | 1 |
$300 |
| Accepted Return of Alcoholic Beverages Beyond Ordinary/Usual Reasons | 1 |
$300 |
| Failed to Notify the Department Before 90 Days of Nonuse Occurs | 1 |
$300 |
| Failed to Operate a Going Establishment | 1 |
$300 |
| Failed to Post License or Age Placard in a Conspicuous Place on the Premises | 1 |
$300 |
| Failed to Notify the Department or Local Law Enforcement an Access Control System Was Removed |
1 |
$300 |