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:

  1. Failure to submit a completed application to obtain department approval of a new owner.
  2. Failure to prepare and submit Alteration Request.  
  3. Failure to pay annual license renewal fee or license fee.
  4. 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

 

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