Bill Summary – FastDemocracy

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68th Legislature 2023                                                                                           HB 783.1
                                                HOUSE BILL NO. 783
    INTRODUCED BY F. NAVE, S. KERNS, D. FERN, K. SEEKINS-CROWE, R. MARSHALL, E. BUTTREY, B.
                         KEENAN, J. READ, M. HOPKINS, M. YAKAWICH, N. HASTINGS
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  A BILL FOR AN ACT ENTITLED: “AN ACT REVISING ALCOHOL SPECIAL PERMIT LAWS; ALLOWING A
  MONTANA WINERY TO SELL ALCOHOL PRODUCED BY THE WINERY FOR OFF-PREMISES
  CONSUMPTION; PROVIDING FOR UP TO 12 SPECIAL PERMITS A YEAR; AND AMENDING SECTION 16-
  4-301, MCA.”
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          Section 1. Section 16-4-301, MCA, is amended to read:
          "16-4-301.   Special permits to sell all alcoholic beverages, beer, and table wine -- application
  and issuance. (1) (a) The following organizations or institutions that conduct a special event may receive up to
  12 special permits a year to sell beer and table wine to the patrons of the special event:
          (i)      An an organization or institution that has a tax-exempt designation under the provisions of
  section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. 501(c)(3), as amended,;
          (ii)     an organization or institution that is organized and operated to raise funds for a needy person
  in need; or
          (iii)    an organization or institution that is an accredited Montana postsecondary school and that
  conducts a special event may receive a special permit to sell beer and table wine to the patrons of that special
  event. An organization may receive up to three special permits a year.
          (b)      A civic league or organization that has a tax-exempt designation under section 501(c)(4) of the
  Internal Revenue Code, 26 U.S.C. 501(c)(4), as amended, or an organization authorized by an accredited
  Montana postsecondary school to engage in fundraising activities for intercollegiate athletics that has a tax-
  exempt designation under the provisions of section 501(c)(3) of the Internal Revenue Code, 26 U.S.C.
  501(c)(3), as amended, may receive up to 12 special permits a year to sell beer and table wine. For purposes
  of fundraising activities for intercollegiate athletics, only one organization for each Montana postsecondary
                                                              -1-                     Authorized Print Version – HB 783
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68th Legislature 2023                                                                                                 HB 783.1
  school may be authorized to apply for and receive special permits under this section. All net earnings from the
  sale of beer and table wine must be contributed to the state of Montana or a political subdivision of the state or
  must be devoted to purposes required of entities under section 501(c)(3) of the Internal Revenue Code, 26
  U.S.C. 501(c)(3), as amended.
           (c)      An association or corporation engaged in professional sporting contests or junior hockey
  contests may receive one special permit to sell beer and table wine covering the entire season of play if:
           (i)      the association or corporation is sanctioned by a sports organization that regulates the specific
  sport;
           (ii)     the season of play of the sport is specified in advance;
           (iii)    an admission fee to the contests is charged; and
           (iv)     the contest events are held in facilities that provide seating for at least 1,000 patrons.
           (d)      A chamber of commerce or business league that has a tax-exempt designation under section
  501(c)(6) of the Internal Revenue Code, 26 U.S.C. 501(c)(6), as amended, may receive up to 12 special
  permits a year to sell beer and table wine. A chamber of commerce may not use one of its special permits for
  an event conducted by a business league, and a business league may not use one of its permits for an event
  conducted by a chamber of commerce. The chamber of commerce or business league receiving a special
  permit shall obtain liquor liability insurance for any event it conducts.
           (e)      A winery located in this state and licensed pursuant to 16-4-107 may receive up to 12 special
  permits during a calendar year to provide wine that was produced at the winery's licensed premises. The
  special permit allows the winery to sell its products for off-premises consumption if sold in its original packaging.
           (e)(f)   The beer and wine sold under this subsection (1) must be consumed at the time when and
  within the enclosure where the special event, activity, or sporting contest is held.
           (f)(g)   An application for a special permit must be presented 3 days in advance, but the department
  may, for good cause, waive the 3-day requirement. The application must describe the location of the enclosure
  where the special event, activity, or sporting contest is to be held, the nature of the special event, activity, or
  sporting contest, and the period during which it is contemplated that the special event, activity, or sporting
  contest will be held. An application for a permit for professional sporting contests or junior hockey contests
  under subsection (1)(c) must provide the inclusive dates of the season of play for the sporting contest. The
                                                                -2-                      Authorized Print Version – HB 783
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68th Legislature 2023                                                                                             HB 783.1
  application must be accompanied by the amount of the permit fee and a written statement of approval of the
  premises where the special event, activity, or sporting contest is to be held issued by the local law enforcement
  agency that has jurisdiction over the premises.
          (g)(h)   A special permit issued under this subsection (1) for the purpose of selling and serving beer at
  a special event, activity, or sporting contest conducted on the premises of a county fairground or public sports
  arena authorizes the permitholder to sell and serve beer in the grandstand and bleacher area of the premises,
  as well as from a booth, stand, or other fixed place on the premises.
          (h)(i)   For the purposes of this subsection (1), a post of a nationally chartered veterans' organization
  or a lodge of a recognized national fraternal organization otherwise licensed under this code is an organization
  that may receive special permits for three special events a year, as described in subsection (1)(a), to sell beer
  and table wine. All net proceeds must go to the post or lodge acquiring the special permit.
          (2)      (a) A post of a nationally chartered veterans' organization or a lodge of a recognized national
  fraternal organization not otherwise licensed under this code may receive, without notice or hearing as provided
  in 16-4-207, a special permit to sell beer and table wine or a special permit to sell all alcoholic beverages at the
  post or lodge to members and their guests only, to be consumed within the hall or building of the post or lodge.
          (b)      The application of a nationally chartered veterans' organization or lodge of a recognized
  national fraternal organization must describe the location of the hall or building where the special permit will be
  used and the date it will be used.
          (c)      The special permit may be issued for a 24-hour period only, ending at 2 a.m., and the
  department may not issue more than 12 special permits to any post or lodge during a calendar year."
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                                                               -3-                     Authorized Print Version – HB 783
Statutes affected: 
HB0783_1.pdf: 16-4-301
HB0783_2.pdf: 16-4-301
HB0783_3.pdf: 16-4-301
HB0783_4.pdf: 16-4-301
Amended: 16-4-301
Introduced: 16-4-301