Bill Summary – FastDemocracy

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68th Legislature 2023                                                                                          HB 95.1
                                                HOUSE BILL NO. 95
                                          INTRODUCED BY E. BUTTREY
                               BY REQUEST OF THE DEPARTMENT OF REVENUE
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  A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING ALCOHOLIC BEVERAGE LAWS;
  REVISING WHOLESALER LAWS; REVISING REQUIREMENTS BY THE DEPARTMENT OF REVENUE;
  REMOVING REFERENCES TO MALT LIQUORS; REVISING LAWS RELATING TO THE CONVEYANCE OF
  ALCOHOLIC BEVERAGES; REVISING LAWS RELATING TO PAYMENT BY RETAIL LICENSEES TO
  BREWERS, BEER IMPORTERS, OR WHOLESALERS; UPDATING LANGUAGE RELATING TO REFILLING
  LIQUOR BOTTLES; REVISING LAWS RELATING TO RAFFLES OR AUCTIONS; REVISING LAWS
  RELATING TO REFERENCING APPLICABLE FEDERAL LAWS; REVISING LAWS RELATING TO
  SHIPMENTS BY COMMON CARRIERS; REVISING LAWS RELATING TO TABLE WINE; AMENDING
  SECTIONS 16-3-101, 16-3-103, 16-3-104, 16-3-106, 16-3-230, 16-3-233, 16-3-243, 16-3-301, 16-3-306, 16-3-
  308, 16-3-316, 16-3-401, 16-3-411, AND 16-6-314, 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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           Section 1. Section 16-3-101, MCA, is amended to read:
           "16-3-101.   Alcoholic beverage transactions -- only in accordance with code. (1) A person who
  manufactures, imports, distributes, wholesales, or sells alcoholic beverages or the person's agent may not give
  or sell to any person within the state any alcoholic beverage except as may be permitted by and in accordance
  with the provisions of this code.
           (2)     (a) Except as otherwise provided by this code, a person or the person's agent may not ship,
  transport, or consign or cause to be shipped, transported, or consigned:
           (i)     any alcoholic beverage to any person in this state who does not hold a valid wholesaler's
  license or connoisseur's license issued by the department; or
           (ii)    any liquor except to the state liquor warehouse.
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68th Legislature 2023                                                                                                 HB 95.1
          (b)      The prohibition in subsection (2)(a) includes alcoholic beverages ordered or purchased by
  telephone, computer, or other device, except by persons holding a valid connoisseur's license provided for in
  16-4-901.
          (3)   Except as otherwise provided by this code, alcoholic beverages shipped, transported, or
  consigned pursuant to subsection (2)(a) and intended for sale to any person not licensed under this code must
  be distributed by the licensed wholesaler to a licensed retailer for sale to the ultimate consumer."
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          Section 2. Section 16-3-103, MCA, is amended to read:
          "16-3-103.   Unlawful sales solicitation or advertising -- exceptions. (1) A person within the state
  may not:
          (a)      canvass for, receive, take, or solicit orders for the purchase or sale of any liquor or act as agent
  or intermediary for the sale or purchase of any liquor or be represented as an agent or intermediary unless
  permitted to do so under rules that are promulgated by the department to govern the activities;
          (b)      canvass for or solicit orders for the purchase or sale of any beer or malt liquor except in the
  case of beer proposed to be sold to beer licensees duly authorized to sell beer under the provisions of this
  code;
          (c)      exhibit, publish, or display or permit to be exhibited, published, or displayed any form of
  advertisement or any other announcement, publication, or price list of or concerning liquor or where or from
  whom the same may be had, obtained, or purchased unless permitted to do so by the rules of the department
  and then only in accordance with the rules.
          (2)      This section does not apply to:
          (a)      the department, any act of the department, any agency liquor store;
          (b)   the receipt or transmission of a telegram or letter by any telegraph agent or operator or post-office
  employee in the ordinary course of employment as the agent, operator, or employee;
          (c)(b)   the sale and serving of beer in the grandstand and bleacher area of a county fairground or
  public sports arena under a special permit issued pursuant to 16-4-301 or a catering endorsement issued
  pursuant to 16-4-111 or 16-4-204; or
          (d)(c)   the sale of alcohol at a sporting event conducted at a Montana university as provided in 16-4-
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68th Legislature 2023                                                                                               HB 95.1
  112."
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          Section 3. Section 16-3-104, MCA, is amended to read:
          "16-3-104.   Common carriers to purchase beer from brewer, beer importer, or wholesaler. It shall
  be unlawful for the The operator of any common carrier or its employees to make sale of may not sell or
  dispose of any beer or malt liquors except such as shall have beer that has been lawfully acquired or
  purchased from a duly licensed brewer, beer importer, or wholesaler."
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          Section 4. Section 16-3-106, MCA, is amended to read:
          "16-3-106.   Conveyance of liquors, table wines, and beer alcoholic beverages -- opening
  alcoholic beverages during transit forbidden. (1) It is lawful to carry or convey liquor or table wine to any
  agency liquor store and to and from the state liquor warehouse or any depot established by the department for
  the purposes of this code, and when permitted to do so by this code and the rules promulgated under this code,
  it is lawful for any common carrier or other person to carry or convey liquor or table wine sold by a vendor from
  an agency liquor store or to carry or convey beer, when lawfully sold by a brewer, from the premises where the
  beer was manufactured or from premises where the beer may be lawfully kept and sold to any place to which
  the liquor, table wine, or beer may be lawfully delivered under this code and the rules promulgated under this
  code It is lawful to carry or convey alcoholic beverages to any place to which the alcoholic beverages may be
  lawfully delivered under this code and the rules of the department.
          (2)      A common carrier or any other person may not It is unlawful to:
          (a)      open, break, or allow to be opened or broken any package or vessel containing an alcoholic
  beverage; or
          (b)      drink or use or allow to be drunk or used any alcoholic beverage while it is being carried or
  conveyed."
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          Section 5. Section 16-3-230, MCA, is amended to read:
          "16-3-230.   Beer required to be shipped to wholesaler. Except as provided in 16-3-214 and 16-4-
  901, all beer that is to be distributed in Montana, whether manufactured outside of or within the state of
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68th Legislature 2023                                                                                                HB 95.1
  Montana, must be consigned to and shipped, either directly or via a licensed storage depot, to a licensed
  wholesaler and unloaded into the wholesaler's warehouse in Montana or subwarehouse in Montana. A brewer
  or beer importer may sell only to wholesalers from a storage depot in Montana and shall maintain records of all
  beer, including the name or kind received, on hand, and sold. The records may at any time be inspected by a
  representative of the department. The wholesaler shall distribute the beer from the warehouse or
  subwarehouse and shall keep records at the wholesaler's principal place of business of all beer, including the
  name or kind received, on hand, sold, and distributed. The records may be inspected by a representative of the
  department at any time."
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          Section 6. Section 16-3-233, MCA, is amended to read:
          "16-3-233.   Sales to public by wholesaler unlawful. A Except as provided in 16-3-316, a wholesaler
  may not give, sell, deliver, or distribute any beer purchased or acquired by the wholesaler to the public."
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          Section 7. Section 16-3-243, MCA, is amended to read:
          "16-3-243.   Seven-day credit limitation. (1) No sale or delivery of beer shall be made to any retail
  licensee except for cash paid within 7 days after the delivery thereof, A brewer, beer importer, or beer
  wholesaler may not sell or deliver beer unless a retail licensee pays within 7 days of the delivery and in no
  event shall any brewer, beer importer, or wholesaler may not extend more than 7 days' credit on account of
  such for payment for the beer to a the retail licensee., nor shall any retail licensee accept or receive delivery of
  such beer without agreement to pay in cash therefor
          (2)      A retail licensee shall pay a brewer, beer importer, or beer wholesaler in full for beer within 7
  days from the date of delivery thereof and may not accept more than 7 days' credit from a brewer, beer
  importer, or beer wholesaler. A correctly dated check which is honored upon presentment shall be considered
  as cash within the meaning of this code. Failure to pay in full within 7 days from the date of delivery is
  considered an impermissible acceptance of credit.
          (3)      Any extension or acceptance of credit in violation hereof shall be regarded and construed as of
  this section is considered rendering or receiving of financial assistance., and the licenses of brewers, Brewers,
  beer importers, beer wholesalers, and retail licensees involved in violation hereof shall be suspended or
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68th Legislature 2023                                                                                               HB 95.1
  revoked, as determined by the department in its discretion who violate this section are subject to the penalty
  provisions of 16-4-406."
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          Section 8. Section 16-3-301, MCA, is amended to read:
          "16-3-301.    Unlawful purchases, transfers, sales, or deliveries -- presumption of legal age. (1) It
  Except as allowed in 16-4-213(8), it is unlawful for a licensed retailer to:
          (a)      purchase or acquire beer or wine from anyone except a brewery, winery, or wholesaler
  licensed under the provisions of this code except as allowed in 16-4-213 (8).;
          (b)      purchase or acquire table wine from anyone except a liquor store agent or winery or table wine
  distributor licensed under the provisions of this code;
          (c)      purchase or acquire wine from anyone except a liquor store agent or winery;
          (2)(d)   It is unlawful for a licensed retailer to transport beer or wine alcoholic beverages from one
  licensed premises or other facility to any other licensed premises owned by the licensee except as allowed in
  16-4-213 (8).; or
          (3)(e)   It is unlawful for a licensed retailer to purchase or acquire liquor from anyone except an agency
  liquor store except as allowed in 16-4-213 (8).
          (4)(2)   It is unlawful for a licensed distributor or wholesaler to purchase beer, table wine, or wine from
  anyone except a brewery, winery, or wholesaler licensed or registered under this code.
          (3)      It is unlawful for a liquor store agent to purchase beer, table wine, or sacramental wine from
  anyone except a table wine distributor licensed under this code.
          (5)(4)   It is unlawful for any licensee, a licensee's employee, or any other person to sell, deliver, or
  give away or cause or permit to be sold, delivered, or given away any alcoholic beverage to:
          (a)      any person under 21 years of age; or
          (b)      any person actually, apparently, or obviously intoxicated.
          (6)(5)   Any person under 21 years of age or any other person who knowingly misrepresents the
  person's qualifications for the purpose of obtaining an alcoholic beverage from the licensee is equally guilty with
  the licensee and, upon on conviction, is subject to the penalty provided in 45-5-624. However, nothing in this
  section may be construed as authorizing or permitting the sale of an alcoholic beverage to any person in
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68th Legislature 2023                                                                                             HB 95.1
  violation of any federal law.
          (7)(6)   All licensees shall display in a prominent place in their premises a placard, issued by the
  department, stating fully the consequences for violations of the provisions of this code by persons under 21
  years of age.
          (8)(7)   For purposes of 45-5-623 and this title, the establishment of the following facts by a person
  making a sale of alcoholic beverages to a person under the legal age constitutes prima facie evidence of
  innocence and a defense to a prosecution for sale of alcoholic beverages to a person under the legal age:
          (a)      the purchaser falsely represented and supported with documentary evidence that an ordinary
  and prudent person would accept that the purchaser was of legal age to purchase alcoholic beverages;
          (b)      the appearance of the purchaser was such that an ordinary and prudent person would believe
  the purchaser to be of legal age to purchase alcoholic beverages; and
          (c)      the sale was made in good faith and in reasonable reliance upon on the representation and
  appearance of the purchaser that the purchaser was of legal age to purchase alcoholic beverages. (See
  compiler's comments for contingent termination of certain text.)"
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          Section 9. Section 16-3-306, MCA, is amended to read:
          "16-3-306.     Proximity to churches and schools restricted. (1) Except as provided in subsections (2)
  through (4), a retail license may not be issued pursuant to this code to any business or enterprise whose
  premises are within 600 feet of and on the same street as a building used exclusively as a church, synagogue,
  or other place of worship or as a school other than a commercially operated or postsecondary school. This
  distance must be measured in a straight line from the center of the nearest entrance of the place of worship or
  school to the nearest entrance of the licensee's premises. This section is a limitation upon on the department's
  licensing authority.
          (2)      However, the The department may renew a license, approve the transfer of ownership of a
  license, or allow the current licensee to apply for a new license type for any establishment located in violation of
  this section if the licensee does not relocate an entrance any closer than the existing entrances and if the
  establishment:
          (a)      was located on the site before the place of worship or school opened; or
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68th Legislature 2023                                                                                               HB 95.1
          (b)      was located in a bona fide hotel, restaurant, or fraternal organization building at the site since
  January 1, 1937.
          (3)      Subsection (1) does not apply to licenses for the sale of beer, table wine, or both in the original
  package for off-premises consumption.
          (4)      Subsection (1) does not apply within the applicable jurisdiction of a local government that has
  supplanted the provisions of subsection (1) as provided in 16-3-309."
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          Section 10. Section 16-3-308, MCA, is amended to read:
          "16-3-308.   Refilling of liquor bottles prohibited. (1) No A person who sell or offers liquor for sale, or
  the an agent or employee of such the person, who sells or offers liquor for sale may not:
          (a)      place in any liquor bottle any liquor whatsoever other than that contained in such the bottle at
  the time of stamping by the federal government bottling by an alcoholic beverage manufacturer;
          (b)      possess any liquor bottle in which any liquor has been placed in violation of subsection (1)(a);
          (c)      by the addition of any substance whatsoever to any liquor bottle, in any manner alter or
  increase any portion of the original contents contained in such the bottle at the time of stamping by the federal
  government bottling by an alcoholic beverage manufacturer; or
          (d)      possess any liquor bottle, any portion of the contents of which any portion of its contents has
  been altered or increased in violation of subsection (1)(c).
          (2)      This section does not prohibit any reuse of liquor bottles which that is permitted under laws or
  regulations of the federal government."
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          Section 11. Section 16-3-316, MCA, is amended to read:
          "16-3-316.   Fundraising events for nonprofit and tax-exempt organizations. (1) A nonprofit
  organization governed under Title 35, chapter 2, or an organization designated as tax-exempt under the
  provisions of section 501(c) of the Internal Revenue Code, 26 U.S.C. 501(c), as amended, may ra