Bill Summary – FastDemocracy

67th Legislature                                                                                                   HB 226.1
                                                   HOUSE BILL NO. 226
                                             INTRODUCED BY K. ZOLNIKOV
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   A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING ALCOHOL LAWS TO ALLOW
   CURBSIDE PICKUP; AUTHORIZING CERTAIN LICENSEES AND LIQUOR STORE AGENTS TO OFFER
   CURBSIDE PICKUP TO CUSTOMERS; PROVIDING REQUIREMENTS FOR CURBSIDE PICKUP;
   PROVIDING EXCEPTIONS FOR DOCK SALES; PROVIDING HOURS FOR CURBSIDE PICKUP;
   PROVIDING DEFINITIONS; AMENDING SECTIONS 16-1-106, 16-2-106, 16-3-213, 16-3-214, 16-3-219, 16-3-
   303, 16-3-411, 16-3-418, 16-4-105, 16-4-110, 16-4-115, 16-4-201, 16-4-208, 16-4-209, 16-4-213, 16-4-312,
   AND 16-4-420, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              NEW SECTION. Section 1.        Curbside pickup. (1) Licensed entities and agency liquor stores
   provided under subsection (3) may offer curbside pickup.
              (2)   Curbside pickup constitutes the sale of alcoholic beverages in original packaging, prepared
   servings, or growlers that was ordered online or through the phone for pickup from the licensee or agency liquor
   store during normal business hours and within 300 feet of the licensed premises or agency liquor stores,
   including a drive-through window. Curbside pickup is intended for consumption somewhere other than the
   pickup location. It is not intended for delivery to residences or other businesses, including but not limited to
   restaurants or hotels.
              (3)   This only applies to licenses issued under 16-3-213, 16-3-214, 16-3-411, 16-4-105, 16-4-110, 16-
   4-115, 16-4-201, 16-4-208, 16-4-209, 16-4-213, 16-4-312, and 16-4-420 and agency liquor stores under 16-2-
   101.
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              Section 2. Section 16-1-106, MCA, is amended to read:
              "16-1-106.   Definitions. As used in this code, the following definitions apply:
              (1)   "Agency franchise agreement" means an agreement between the department and a person
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   appointed to sell liquor and table wine as a commission merchant rather than as an employee.
              (2)   "Agency liquor store" means a store operated under an agency franchise agreement in
   accordance with this code for the purpose of selling liquor at either the posted or the retail price for off-premises
   consumption.
              (3)   "Alcohol" means ethyl alcohol, also called ethanol, or the hydrated oxide of ethyl.
              (4)   "Alcoholic beverage" means a compound produced and sold for human consumption as a drink
   that contains more than 0.5% of alcohol by volume.
              (5)   (a) "Beer" means:
              (i)   a malt beverage containing not more than 8.75% of alcohol by volume; or
              (ii) an alcoholic beverage containing not more than 14% alcohol by volume:
              (A)    that is made by the alcoholic fermentation of an infusion or decoction, or a combination of both, in
   potable brewing water, of malted cereal grain; and
              (B)    in which the sugars used for fermentation of the alcoholic beverage are at least 75% derived from
   malted cereal grain measured as a percentage of the total dry weight of the fermentable ingredients.
              (b)   The term does not include a caffeinated or stimulant-enhanced malt beverage.
              (6)   "Beer importer" means a person other than a brewer who imports malt beverages.
              (7)   "Brewer" means a person who produces malt beverages.
              (8)   "Caffeinated or stimulant-enhanced malt beverage" means:
              (a)   a beverage:
              (i)   that is fermented in a manner similar to beer and from which some or all of the fermented alcohol
   has been removed and replaced with distilled ethyl alcohol;
              (ii) that contains at least 0.5% of alcohol by volume;
              (iii) that is treated by processing, filtration, or another method of manufacture that is not generally
   recognized as a traditional process in the production of beer as described in 27 CFR 25.55; and
              (iv) to which is added caffeine or other stimulants, including but not limited to guarana, ginseng, and
   taurine; or
              (b)   a beverage:
              (i)   that contains at least 0.5% of alcohol by volume;
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              (ii) that is treated by processing, filtration, or another method of manufacture that is not generally
   recognized as a traditional process in the production of beer as described in 27 CFR 25.55;
              (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop extract;
              (iv) to which is added caffeine or other stimulants, including but not limited to guarana, ginseng, and
   taurine;
              (v)   for which the producer is required to file a formula for approval with the United States alcohol and
   tobacco tax and trade bureau pursuant to 27 CFR 25.55; and
              (vi) that is not exempt pursuant to 27 CFR 25.55(f).
              (9)   "Community" means:
              (a)   in an incorporated city or town, the area within the incorporated city or town boundaries;
              (b)   in an unincorporated city or area, the area identified by the federal bureau of the census as a
   community for census purposes; and
              (c)   in a consolidated local government, the area of the consolidated local government not otherwise
   incorporated.
              (10) "Concessionaire" means an entity that has a concession agreement with a licensed entity.
              (11) "Curbside pickup" means the sale of alcoholic beverages that meets the requirements of [section
   1].
              (11) (12) "Department" means the department of revenue, unless otherwise specified, and includes the
   department of justice with respect to receiving and processing, but not granting or denying, an application under
   a contract entered into under 16-1-302.
              (12)(13) "Growler" means any refillable, resealable fillable, sealable container complying with federal
   law.
              (13)(14) "Hard cider" means an alcoholic beverage that is made from the alcoholic fermentation of the
   juices of apples or pears and that contains not less than 0.5% of alcohol by volume and not more than 6.9% of
   alcohol by volume, including but not limited to flavored, sparkling, or carbonated cider.
              (14)(15) "Immediate family" means a spouse, dependent children, or dependent parents.
              (15)(16) "Import" means to transfer beer or table wine from outside the state of Montana into the state
   of Montana.
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              (16)(17) "Liquor" means an alcoholic beverage except beer and table wine. The term includes a
   caffeinated or stimulant-enhanced malt beverage.
              (17)(18) "Malt beverage" means an alcoholic beverage made by the fermentation of an infusion or
   decoction, or a combination of both, in potable brewing water, of malted barley with or without hops or their
   parts or their products and with or without other malted cereals and with or without the addition of unmalted or
   prepared cereals, other carbohydrates, or products prepared from carbohydrates and with or without other
   wholesome products suitable for human food consumption.
              (19) (a) "Original package" means the sealed container in which a manufacturer packages its product
   for retail sale.
              (b) The term includes:
              (i)   bottles;
              (ii) cans; and
              (iii) kegs.
              (18)(20) "Package" means a container or receptacle used for holding an alcoholic beverage.
              (19)(21) "Posted price" means the wholesale price of liquor for sale to persons who hold liquor licenses
   as fixed and determined by the department and in addition an excise and license tax as provided in this code.
   In the case of sacramental wine sold in agency liquor stores, the wholesale price may not exceed the sum of
   the department's cost to acquire the sacramental wine, the department's current freight rate to agency liquor
   stores, and a 20% markup.
              (22) “Prepared serving” means a container of alcoholic beverages, filled at the time of sale and sealed
   with a lid, for consumption at a place other than the licensee’s premises.
              (20)(23) "Proof gallon" means a U.S. gallon of liquor at 60 degrees on the Fahrenheit scale that
   contains 50% of alcohol by volume.
              (21)(24) "Public place" means a place, building, or conveyance to which the public has or may be
   permitted to have access and any place of public resort.
              (22)(25) "Retail price" means the price established by an agent for the sale of liquor to persons who do
   not hold liquor licenses. The retail price may not be less than the department's posted price.
              (23)(26) "Rules" means rules adopted by the department or the department of justice pursuant to this
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   code.
              (24)(27) "Sacramental wine" means wine that contains more than 0.5% but not more than 24% of
   alcohol by volume that is manufactured and sold exclusively for use as sacramental wine or for other religious
   purposes.
              (25)(28) "Special event", as it relates to an application for a beer and wine special permit, means a
   short, infrequent, out-of-the-ordinary occurrence, such as a picnic, fair, reception, or sporting contest.
              (26)(29) "State liquor warehouse" means a building owned or under control of the department for the
   purpose of receiving, storing, transporting, or selling alcoholic beverages to agency liquor stores.
              (27)(30) "Storage depot" means a building or structure owned or operated by a brewer at any point in
   the state of Montana off and away from the premises of a brewery, which building or structure is equipped with
   refrigeration or cooling apparatus for the storage of beer and from which a brewer may sell or distribute beer as
   permitted by this code.
              (28)(31) "Subwarehouse" means a building or structure owned or operated by a licensed beer
   wholesaler or table wine distributor, located at a site in Montana other than the site of the beer wholesaler's or
   table wine distributor's warehouse or principal place of business, and used for the receiving, storage, and
   distribution of beer or table wine as permitted by this code.
              (29)(32) "Table wine" means wine that contains not more than 16% of alcohol by volume and includes
   cider.
              (30)(33) "Table wine distributor" means a person importing into or purchasing in Montana table wine or
   sacramental wine for sale or resale to retailers licensed in Montana.
              (31)(34) "Warehouse" means a building or structure located in Montana that is owned or operated by a
   licensed beer wholesaler or table wine distributor for the receiving, storage, and distribution of beer or table
   wine as permitted by this code.
              (32)(35) "Wine" means an alcoholic beverage made from or containing the normal alcoholic
   fermentation of the juice of sound, ripe fruit or other agricultural products without addition or abstraction, except
   as may occur in the usual cellar treatment of clarifying and aging, and that contains more than 0.5% but not
   more than 24% of alcohol by volume. Wine may be ameliorated to correct natural deficiencies, sweetened, and
   fortified in accordance with applicable federal regulations and the customs and practices of the industry. Other
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   alcoholic beverages not defined in this subsection but made in the manner of wine and labeled and sold as
   wine in accordance with federal regulations are also wine."
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              Section 3. Section 16-2-106, MCA, is amended to read:
              "16-2-106.    Sales by agent. A liquor store agent may sell to any person any liquor and table wine that
   the person is entitled to purchase in conformity with the provisions of this code and the rules implementing this
   code. An agent may, under the terms and conditions that the agent establishes, deliver liquor and table wine
   purchased from the agent's agency liquor store. An agent may sell liquor through curbside pickup in original
   packaging."
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              Section 4. Section 16-3-213, MCA, is amended to read:
              "16-3-213.    Brewers or beer importers not to retail beer -- small brewery exceptions. (1) Except
   as provided for small breweries in subsection (2), it is unlawful for any brewer or breweries or beer importer to
   have or own any permit to sell or retail beer at any place or premises. It is the intention of this section to prohibit
   brewers and beer importers from engaging in the retail sale of beer. This section does not prohibit breweries
   from selling and delivering beer manufactured by them, in original packages, at either wholesale or retail.
              (2)   (a) For the purposes of this section, a "small brewery" is a brewery that has an annual nationwide
   production of not less than 100 barrels or more than 60,000 barrels, including:
              (i)   the production of all affiliated manufacturers; and
              (ii) beer purchased from any other beer producer to be sold by the brewery.
              (b)   A small brewery may, at one location for each brewery license and at no more than three locations
   including affiliated manufacturers, provide samples of beer that were brewed and fermented on the premises in
   a sample room located on the licensed premises. The samples may be provided with or without charge
   between the hours of 10 a.m. and 8 p.m. No more than 48 ounces of malt beverage may be sold or given to
   each individual customer during a business day for consumption on the premises or in prepared servings
   through curbside pickup, provided that the 48-ounce limit may not in any way limit a small brewery's sales as
   provided in 16-3-214(1)(a)(iii). No more than 2,000 barrels may be provided annually for on-premises
   consumption including all affiliated manufacturers.
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              (3)   For the purposes of this section, "affiliated manufacturer" means a manufacturer of beer:
              (a)   that one or more members of the manufacturing entity have more than a majority share interest in
   or that controls directly or indirectly another beer manufacturing entity;
              (b)   for which the business operations conducted between or among entities are interrelated or
   interdependent to the extent that the net income of one entity cannot reasonably be determined without
   reference to operations of the other entity; or
              (c)   of which the brand names, products, recipes, merchandise, trade name, trademarks, labels, or
   logos are identical or nearly identical."
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              Section 5. Section 16-3-214, MCA, is amended to read:
              "16-3-214.    Beer sales by brewers -- sample room exception. (1) Subject to the limitations and
   restrictions contained in this code, a brewer who manufactures less than 60,000 barrels of beer a year, upon
   payment of the annual license fee imposed by 16-4-501 and upon presenting satisfactory evidence to the
   department as required by 16-4-101, must be licensed by the department, in accordance with the provisions of
   this code and rules prescribed by the department, to:
              (a)   sell and deliver beer from its storage depot or brewery to:
              (i)   a wholesaler;
              (ii) licensed retailers if the brewer uses the brewer's own equipment, trucks, and employees to deliver
   the beer and if:
              (A)   individual deliveries, other than draught beer, are limited to the case equivalent of 8 barrels a day
   to each licensed retailer; and
              (B)   the total amount of beer sold or delivered directly to all retailers does not exceed 10,000 barrels a
   year; or
              (iii) the public, including curbside pickup between 8 a.m. and 2 a.m. in original packaging or growlers;
              (b)   pr