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Rule Title: CONCESSION AGREEMENTS
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Department: REVENUE
Chapter: LIQUOR LICENSES AND PERMITS
Subchapter: License Applications
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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42.12.133    CONCESSION AGREEMENTS

(1) All new concession agreements must be submitted to the department for review and approval prior to their execution and/or effective date, and must set forth the following:

(a) the nature of the agreement is one that arises from a mutually beneficial situation only;

(b) the agreement gives the licensee authority to operate in the concessioned premises;

(c) a copy of the licensee's amended floor plan, including the new service area;

(d) the licensee is responsible for the sales and service of all alcoholic beverages;

(e) the parties may share the employees. In the event of shared employees, the licensee must retain the right to discipline or otherwise sanction any employee in relation to the service of alcohol. Any violation of the Montana Alcoholic Beverage Code is the sole responsibility of the licensee;

(f) the compensation to be paid for shared employees. The compensation may not be based on a percentage of alcohol sales;

(g) the nonlicensed entity cannot order, or otherwise purchase, any alcoholic beverage product from a wholesaler or agency liquor store;

(h) the agreement must include language that allows the licensee to terminate the agreement without cause;

(i) that all the proceeds from the sale of alcoholic beverages are the property of the licensee; and

(j) any proceeds of alcoholic beverages sales that are collected by the concessionaire must be returned to the licensee not less than every two weeks.

(2) In addition to the general suitability rule requirements in ARM 42.12.145, and other rules specific to the license type, the premises for any license operated under a concession agreement can only be considered suitable for the retail sale of alcoholic beverages if the existence of a concession agreement and the names of the parties to the concession agreement are plainly disclosed to the public both inside and outside of the licensed premises by signage as follows:

(a) at least one sign inside the licensed premises, measuring not less than 8 1/2 by 11 inches and with printing in a font size not smaller than 72, must be clearly visible to customers, and must plainly disclose:

(i) the existence of a concession agreement;

(ii) the names of the persons or entities which are party to the concession agreement and the assumed business names as filed with the Montana Secretary of State, including which party is the licensee; and

(iii) the fact that the licensee is responsible for the service of alcoholic beverages within the premises; and

(b) at least one sign outside the licensed premises so the public can easily determine that alcoholic beverages are available.

(3) The requirements of (2) regarding signage must be met for all licenses operating under a concession agreement and must be complied with for any such license to be issued or renewed for the license year beginning July 1, 2013, or thereafter.

(4) The licensee must maintain a physical possessory interest as required in ARM 42.12.145.

(5) The department, upon receipt of the concession agreement and any supporting documentation, will advise the licensee within seven working days of approval or denial of the agreement unless further documentation or an audit review is necessary. Upon approval of the agreement, the license will reflect language that the licensee is also serving alcoholic beverages in the establishment.

(6) A licensee must submit any modification or assumption of an existing concession agreement for review and approval by the department. The concessionaire may continue to operate the business pending approval by the department.

 

History: 16-1-303, MCA; IMP, 16-3-305, 16-3-311, 16-4-401, 16-4-402, MCA; NEW, 2003 MAR p. 21, Eff. 1/17/03; AMD, 2004 MAR p. 1972, Eff. 8/20/04; AMD, 2012 MAR p. 1846, Eff. 9/21/12; AMD, 2017 MAR p. 493, Eff. 4/29/17.


 

 
MAR Notices Effective From Effective To History Notes
42-2-967 4/29/2017 Current History: 16-1-303, MCA; IMP, 16-3-305, 16-3-311, 16-4-401, 16-4-402, MCA; NEW, 2003 MAR p. 21, Eff. 1/17/03; AMD, 2004 MAR p. 1972, Eff. 8/20/04; AMD, 2012 MAR p. 1846, Eff. 9/21/12; AMD, 2017 MAR p. 493, Eff. 4/29/17.
42-2-876 9/21/2012 4/29/2017 History: 16-1-303, MCA; IMP, 16-3-305, 16-3-311, 16-4-401, 16-4-402, MCA; NEW, 2003 MAR p. 21, Eff. 1/17/03; AMD, 2004 MAR p. 1972, Eff. 8/20/04; AMD, 2012 MAR p. 1846, Eff. 9/21/12.
8/20/2004 9/21/2012 History: Sec. 16-1-303, MCA; IMP, Sec. 16-3-305, 16-3-311, 16-4-401, and 16-4-402, MCA; NEW, 2003 MAR p. 21, Eff. 1/17/03; AMD, 2004 MAR p. 1972, Eff. 8/20/04.
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