Revise alcohol laws

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AN ACT ALLOWING OFF-PREMISES BEER AND WINE LICENSES TO DELIVER BEER AND TABLE WINE;
CREATING A THIRD-PARTY DELIVERY LICENSE FOR ALCOHOL; ALLOWING AN OFF-PREMISES
RETAIL LICENSEE TO HAVE A THIRD-PARTY DELIVERY LICENSEE DELIVER BEER OR TABLE WINE;
REQUIRING THE SALE OF ALCOHOL TO THE END CONSUMER; PROVIDING LICENSURE
REQUIREMENTS; PROVIDING REQUIREMENTS FOR THE THIRD-PARTY DELIVERY LICENSEE;
REVISING LAWS RELATING TO RESPONSIBLE SERVER TRAINING; PROVIDING FOR LICENSING BY
THE DEPARTMENT OF REVENUE; PROVIDING FOR PAYMENT OF A FEE; PROVIDING RULEMAKING
AUTHORITY; PROVIDING DEFINITIONS; AMENDING SECTIONS 16-4-115, 16-4-501, 16-4-1001, 16-4-1002,
16-4-1003, 16-4-1004, 16-4-1005, 16-4-1007, AND 16-4-1008, MCA; AND PROVIDING A DELAYED
EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Third-party delivery license -- definitions. (1) An off-premises retail licensee as
provided for in 16-4-115 shall sell beer or table wine to the end consumer for personal use only and not for
resale. A third-party delivery licensee may not sell beer or table wine to the end consumer. The off-premises
retail licensee must have the exclusive authority to determine which beer or table wine is available for delivery
and set the prices for these beverages.
(2) (a) The department may issue a third-party delivery license to a third-party delivery applicant if
the following requirements are met:
(i) the third-party delivery applicant meets the requirements for an off-premises retail licensee
under 16-4-401 to hold a license; and
(ii) the third-party delivery applicant submits an application and pays the initial license fee as
provided in 16-4-501.
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(b) Third-party delivery licenses may be renewed annually by June 30 if:
(i) the third-party delivery licensee continues to meet the requirements for an off-premises retail
licensee under 16-4-401 to hold a license; and
(ii) the third-party delivery licensee submits a renewal form and the annual renewal fee as
provided in 16-4-501.
(3) A third-party delivery licensee may only deliver or facilitate the delivery of beer or table wine
through drivers who:
(a) are an employee or an independent contractor of the third-party delivery licensee;
(b) are at least 21 years of age;
(c) have a valid driver's license for delivery through a motor vehicle or a valid driver's license or a
state-issued identification for delivery through bicycle or other means not a motor vehicle;
(d) have not been convicted of a felony, unless the driver's rights have been restored, or a driving
under the influence offense in the past 7 years; and
(e) have completed a responsible server and sales training program or a delivery training program
under Title 16, chapter 4, part 10, prior to their first alcohol delivery.
(4) Third-party delivery licensees are subject to the penalties provided in Title 16, chapter 4, part
10.
(5) Any beer or table wine sold by an off-premises retail licensee for delivery by or through a third-
party delivery licensee must be removed from the off-premises retail licensee's licensed premises only during
the hours in which the off-premises retail licensee is permitted to sell alcoholic beverages. The delivery must be
completed within an hour after the time that the off-premises retail licensee is required to end sales of alcoholic
beverages.
(6) Any beer or table wine unable to be delivered for any reason must be returned to the licensed
premises of the off-premises retail licensee that sold the beer or table wine. The driver shall return the beer or
table wine to the off-premises retail licensee prior to or at the end of the delivery route, unless the off-premises
retail licensee is closed at the time of return, in which case the driver shall return the beer or table wine as soon
as practicable. The third-party delivery licensee shall document and maintain a record of the delivery attempt.
Drivers may not be compensated based on whether a delivery of beer or table wine results in a completed
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delivery transaction.
(7) The person to whom the delivery is made must be at least 21 years of age. The driver shall use
an identification scanning software technology or an alternative approved by the department to verify the age of
the recipient at the time of delivery.
(8) Deliveries may not be made to anyone who is apparently or obviously intoxicated.
(9) The outer packaging containing the beer or table wine being delivered must clearly indicate
that the package contains an alcoholic beverage, unless one of the following conditions is met:
(a) the person delivering the order has personally retrieved and bagged or otherwise packaged the
beer or table wine for delivery; or
(b) the driver is notified through electronic or other means that the delivery order contains alcohol
and that the recipient must be 21 years of age or older.
(10) Beer or table wine intended for delivery by a motor vehicle must be transported in the rear of
the motor vehicle and may not be within the immediate arm's length of the driver or within a separate cargo
area.
(11) Beer or table wine intended for delivery by bicycle must be in a closed compartment or
otherwise out of reach of the bicycle operator.
(12) A licensee under this section may not deliver or facilitate delivery of beer or table wine to the
following locations:
(a) a business licensed to sell alcoholic beverages at retail, with the exception of delivery to
individual guest rooms of a lodging facility that is also licensed to sell alcoholic beverages at retail;
(b) a location within the campus of an institution of higher education; or
(c) a property that does not have a permanent address that includes a street name and number.
(13) A licensee under this section that delivers or facilitates the delivery of beer or table wine shall
maintain books and records reflecting the date, time, address, and recipient of the alcohol delivery for each
delivery, the name and address of the person making the delivery, and the name and business address of the
off-premises retail licensee selling the alcoholic beverage. Records must be maintained in either hard copy or
electronic format for 3 years. Licensees shall make these books and records available to the department and its
investigators on reasonable notice from the department.
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(14) An off-premises retail licensee may utilize the services of a third-party delivery licensee by
means of the telephone, the internet, a mobile application, or other electronic means to facilitate the ordering or
delivery of beer or table wine from inventory located at the off-premises retail licensee's licensed premises.
(15) An off-premises retail licensee is not subject to violations of this section that arise out of the
delivery of beer or table wine delivered by a third-party delivery licensee.
(16) A violation of this code by a third-party delivery licensee or its drivers subjects the third-party
delivery licensee to penalties as provided in 16-4-406.
(17) Nothing in this section may be construed to require a technology services company to obtain a
third-party delivery license if the company does not employ or contract with delivery drivers and instead
provides software or an application that connects consumers and off-premises retail licensees for the delivery
of beer or table wine from the off-premises retail licensee.
(18) A third-party delivery license is not required for a common carrier lawfully transporting or
shipping alcoholic beverages.
(19) The third-party delivery licensee shall maintain a general liability insurance policy in an amount
of no less than $1 million for each occurrence with a $2 million aggregate.
(20) The department may adopt rules to implement this section.
(21) As used in this section, the following definitions apply:
(a) "Third-party delivery license" means a license issued by the department to a third-party delivery
licensee for the delivery of beer or table wine.
(b) "Third-party delivery licensee" means a person who offers a service to deliver or facilitate the
delivery of, but not to buy or sell, beer or table wine in original packaging from an off-premises retail licensee
issued a license under 16-4-115 and enters into a written agreement with the off-premises retail licensee for the
purpose of delivering beer or table wine sold by the off-premises retail licensee.
Section 2. Section 16-4-115, MCA, is amended to read:
"16-4-115. Beer and wine licenses for off-premises consumption -- third-party delivery -- own
delivery for grocery stores. (1) A retail license to sell beer or table wine, or both, in the original packages for
off-premises consumption may be issued only to individuals or entities qualified for licensure under 16-4-401. If
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the premises proposed for licensing are operated in conjunction with another business, that business must be a
grocery store or drugstore licensed as a pharmacy. The number of licenses that the department may issue is
not limited by the provisions of 16-4-105 but must be determined by the department in the exercise of its sound
discretion, and the department may in the exercise of its sound discretion grant or deny an application for any
license or suspend or revoke any license for cause.
(2) On receipt of a completed application for a license under this section, accompanied by the
necessary license fee as provided in 16-4-501, the department shall request that the department of justice
make a background investigation of all matters relating to the application.
(3) Based on the results of the investigation or in exercising its sound discretion as provided in
subsection (1), the department shall determine whether:
(a) the applicant is qualified to receive a license;
(b) the applicant's premises are suitable for the carrying on of the business; and
(c) the requirements of this code and the rules promulgated by the department are met and
complied with.
(4) License applications submitted under this section are not subject to the provisions of 16-4-203
and 16-4-207.
(5) A license issued under this section may offer curbside pickup between 8 a.m. and 2 a.m. in
original packaging.
(6) An off-premises retail licensee may use a third-party delivery licensee to deliver beer and table
wine as provided in [section 1].
(7) (a) A retail licensee who qualifies for licensure under 16-4-401 as an off-premises retail
licensee that operates in conjunction with a grocery store or drugstore licensed as a pharmacy with a license to
sell beer and table wine in original packaging may apply to the department and pay a fee for an endorsement to
deliver beer and table wine in original packaging. Deliveries under this subsection (7) may be made only to a
residential or commercial address. An off-premises retail licensee under this section may only deliver beer or
table wine through drivers who:
(i) are an employee of the licensee or an independent contractor of the retail licensee;
(ii) are at least 21 years of age;
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(iii) have a valid driver's license for delivery through a motor vehicle or a valid driver's license or a
state-issued identification for delivery through bicycle or other means not a motor vehicle;
(iv) have not been convicted of a felony, unless the driver's rights have been restored, or a driving
under the influence offense in the past 7 years; and
(v) have completed a responsible server and sales training program or a delivery training program
under Title 16, chapter 4, part 10, prior to their first alcohol delivery.
(b) Any beer or table wine sold by the off-premises retail licensee for delivery must be removed
from the off-premises retail licensee's licensed premises only during the hours in which the off-premises retail
licensee is permitted to sell alcoholic beverages. The delivery must be completed within an hour after the time
that the off-premises retail licensee is required to end sales of alcoholic beverages.
(c) Any beer or table wine unable to be delivered for any reason must be returned to the licensed
premises of the off-premises retail licensee that sold the beer or table wine. The driver shall return the beer or
table wine to the off-premises retail licensee prior to or at the end of the delivery route, unless the off-premises
retail licensee is closed at the time of return, in which case the driver shall return the beer or table wine as soon
as practicable. The third-party delivery licensee shall document and maintain a record of the delivery attempt.
Drivers may not be compensated based on whether a delivery of beer or table wine results in a completed
delivery transaction.
(d) The person to whom the delivery is made must be at least 21 years of age. The driver shall use
an identification scanning software technology or an alternative approved by the department to verify the age of
the recipient at the time of delivery.
(e) Deliveries may not be made to anyone who is apparently or obviously intoxicated.
(f) The outer packaging containing the beer or table wine being delivered must clearly indicate
that the package contains an alcoholic beverage, unless one of the following conditions is met:
(i) the person delivering the order has personally retrieved and bagged or otherwise packaged the
beer or table wine for delivery; or
(ii) the driver is notified through electronic or other means that the delivery order contains alcohol
and that the recipient must be 21 years of age or older.
(g) Beer or table wine intended for delivery by a motor vehicle must be transported in the rear of
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the motor vehicle and may not be within the immediate arm's length of the driver or within a separate cargo
area.
(h) Beer or table wine intended for delivery by bicycle must be in a closed compartment or
otherwise out of reach of the bicycle operator.
(i) A off-premises retail licensee under this section may not deliver or facilitate delivery of beer or
table wine to the following locations:
(i) a business licensed to sell alcoholic beverages at retail, with the exception of delivery to
individual guest rooms of a lodging facility that is also licensed to sell alcoholic beverages at retail;
(ii) a location within the campus of an institution of higher education; or
(iii) a property that does not have a permanent address that includes a street name and number.
(j) An off-premises retail licensee under this section that delivers or facilitates the delivery of beer
or table wine shall maintain books and records reflecting the date, time, address, and recipient of the alcohol
delivery for each delivery, the name and address of the person making the delivery, and the name and
business address of the off-premises retail licensee selling the alcoholic beverage. Records must be
maintained in either hard copy or electronic format for 3 years. Off-premises retail licensees shall make these
books and records available to the department and its investigators on reasonable notice from the department."
Section 3. Section 16-4-501, MCA, is amended to read:
"16-4-501. License and permit fees. (1) Each beer licensee licensed to sell either beer or table wine
only or both beer and table wine under the provisions of this code shall pay a license fee. Unless otherwise
specified in this section, the fee is an annual fee and is imposed as follows:
(a) (i) each brewer and each beer importer, wherever located, whose product is sold or offered for
sale within the state, $500;
(ii) for each storage depot, $400;
(b) (i) each license for selling and distributing beer, table wine, or sacramental wine at wholesale to
licensed retailers or table wine to agency liquor stores under 16-4-113, $400; each winery, $200;
(ii) for each subwarehouse and winery storage depot, $400;
(c) each beer and wine retailer, $400;
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(d) (i) for a license to sell beer at retail for off-premises consumption only, $200;
(ii) for a license to sell table wine at retail for off-premises consumption only, either alone or in
conjunction with beer, $200;
(e) any unit of a nationally chartered veterans' organization, $50.
(2) The permit fee under 16-4-301(1) is computed at the following rate:
(a) $10 a day for each day that beer and table wine are sold at events, activities, or sporting
contests, other than those applied for pursuant to 16-4-301(1)(c); and
(b) $1,000 a season for professional sporting contests or junior hockey contests held under the
provisions of 16-4-301(1)(c).
(3) The permit fee under 16-4-301(2) is $10 for the sale of beer and table wine only or $20 for the
sale of all alcoholic beverages.
(4) Passenger carrier licenses must be issued on payment by the applicant of an annual license
fee in the sum of $300.
(5) The annual renewal fee for:
(a) a brewer producing 10,000 or fewer barrels of beer, as defined in 16-1-406, is $200;
(b) resort retail all-beverages licenses within a given resort area is $2,000 for each license; and
(c) a continuing care retirement community limited all-beverages license is $500 for each license.
(6) Except as provided in this section, each licensee licensed under the quotas of 16-4-201 shall
pay an annual license fee as follows:
(a) for each license outside of incorporated cities and incorporated towns or in incorporated cities
and incorporated towns with a population of less than 2,000, $250 for a unit of a nationally chartered veterans'
organization and $400 for all other licensees;
(b) for each license in incorporated cities with a population of more than 2,000 and less than 5,000
or within a distance of 5 miles, measured in a straight line from the nearest entrance of the premises to be
licensed to the nearest boundary of the city, $350 for a unit of a nationally chartered veterans' organization and
$500 for all other licensees;
(c) for each license in incorporated cities with a population of more than 5,000 and less than
10,000 or within a distance of 5 miles, measured in a straight line from the nearest entrance of the premises to
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be licensed to the nearest boundary of the city, $500 for a unit of a nationally chartered veterans' organization
and $650 for all other licensees;
(d) for each license in incorporated cities with a population of 10,000 or more or within a distance
of 5 miles, measured in a straight line from the nearest entrance of the premises to be licensed to the nearest
boundary of the city, $650 for a unit of a nationally chartered veterans' organization and $800 for all other
licensees;
(e) the distance of 5 miles from the corporate limits of any incorporated cities and incorporated
towns is measured in a straight line from the nearest entrance of the premises to be licensed to the nearest
boundary of the city or town; and where the premises of the applicant to be licensed are situated within 5 miles
of the corporate boundaries of two or more incorporated cities or incorporated towns of different populations,
the license fee chargeable by the larger incorporated city or incorporated town applies and must be paid by the
applicant. When the premises of the applicant to be licensed are situated within an incorporated town or
incorporated city and any portion of the incorporated town or incorporated city is without a 5-mile limit, the
license fee chargeable by the smaller incorporated town or incorporated city applies and must be paid by the
applicant.
(f) an applicant for the issuance of a resort retail all-beverages license shall pay a $100,000
license fee on issuance of the license. The resort retail all-beverages license may be transferred to another
location within the boundaries of the resort area or to another owner to be used at a location within the
boundaries of the resort area.
(7) The fee for one all-beverages license to a public airport is $800. This license is
nontransferable.
(8) The annual fee for a retail beer and wine license to the Yellowstone airport is $400.
(9) The annual fee for a special beer and table wine license for a nonprofit arts organization under
16-4-303 is $250.
(10) (a) The annual fee for a distillery is $600.
(b) The annual fee for each distillery storage depot is $400.
(11) The initial and annual fee for a third-party delivery license under [section 1] is $1,000.
(11)(12)The license fees provided in this section are exclusive of and in addition to other license fees
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chargeable in Montana for the sale of alcoholic beverages.
(12)(13)In addition to other license fees, the department may require a licensee to pay a late fee of 33
1/3% of any license fee delinquent on July 1 of the renewal year or 1 year after the licensee's anniversary date,
66 2/3% of any license fee delinquent on August 1 of the renewal year or 1 year and 1 month after the
licensee's anniversary date, and 100% of any license fee delinquent on September 1 of the renewal year or 1
year and 2 months after the licensee's anniversary date.
(13)(14)All license and permit fees collected under this section must be deposited as provided in 16-2-
108."
Section 4. Section 16-4-1001, MCA, is amended to read:
"16-4-1001. Short title. This part may be cited as the "Responsible Alcohol Sales, and Service, and
Delivery Act"."
Section 5. Section 16-4-1002, MCA, is amended to read:
"16-4-1002. Legislative intent. It is the intent of this part that retail establishments and manufacturers
licensed to sell or serve alcoholic beverages to the public and third-party delivery services licensed to deliver or
facilitate the delivery of alcoholic beverages to the public ensure that all licensees, and their employees, and
independent contractors that sell, or serve, or deliver alcoholic beverages are appropriately trained to comply
with state law prohibiting the sale, or service, or delivery of alcoholic beverages to persons under 21 years of
age and to persons who are intoxicated. This part does not apply to special permits issued under 16-4-301."
Section 6. Section 16-4-1003, MCA, is amended to read:
"16-4-1003. Definition. As used in this part, "licensee" means a person or entity licensed by the
department to sell alcoholic beverages at retail for either on-premises or off-premises consumption or to deliver
or facilitate the delivery of alcoholic beverages."
Section 7. Section 16-4-1004, MCA, is amended to read:
"16-4-1004. Notification -- violation -- penalty. (1) A licensee shall certify annually on its license
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renewal form that the licensee is in compliance with the provisions of this part.
(2) A license renewal form that falsely includes information that the licensee, and all their
employees, or independent contractors have been trained pursuant to this part is a violation of this code.
(3) If, after an investigation under 16-4-406, a licensee is determined to have violated subsection
(2) of this section, the licensee must be assessed an administrative penalty under 16-4-406 or the penalty for
false swearing under 45-7-202."
Section 8. Section 16-4-1005, MCA, is amended to read:
"16-4-1005. Licensees required to ensure training. A licensee shall:
(1) require each employee who is authorized to sell, serve, or deliver alcoholic beverages in the
normal course of employment and the employee's immediate supervisor to successfully complete training to
ensure compliance with state law regarding the sale, and service, or delivery of alcoholic beverages. The
Except as provided in [section 1], training must be completed within 60 days of the employee's date of hire, or
for existing employees of a newly licensed business, within 60 days of the date of licensure, and every 3 years
after the employee's initial training.
(2) maintain employment records verifying employee completion of the training required in
subsection (1)."
Section 9. Section 16-4-1007, MCA, is amended to read:
"16-4-1007. Jurisdiction. The implementation and enforcement of any mandatory server, and sales,
and delivery training programs in this state is under the exclusive authority and jurisdiction of the department."
Section 10. Section 16-4-1008, MCA, is amended to read:
"16-4-1008. Penalty. (1) A licensee found as a result of a routine check for compliance with 16-3-301,
16-6-304, or 16-6-305, or [section 1] to be out of compliance with 16-4-1005 shall pay a $50 penalty for a first
offense, a $200 penalty for a second offense, and a $350 penalty for a third offense in a 3-year period. The fine
must be paid to the department and deposited in the enterprise fund to the credit of the department for
administration of this part.
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(2) The department shall consider the following as mitigating circumstances before taking an
action pursuant to 16-4-406 against a licensee who is not in compliance with the provisions of this part:
(a) the licensee's prior violation history;
(b) the licensee's good faith effort to prevent a violation;
(c) the existence of written policies governing employee conduct; and
(d) whether the evidence of a violation was based solely on the investigating authority creating an
opportunity for the violation rather than on complaints received or observed misconduct."
Section 11. Delivery training program -- rulemaking. (1) The department shall certify all delivery
training programs that include the following:
(a) methods to identify and prevent sales to underage or intoxicated persons;
(b) strategies used by underage persons to obtain alcohol;
(c) acceptable forms of identification and procedures for checking identification;
(d) actions that can be taken to prevent an alcohol-related incident from occurring; and
(e) other requirements adopted by the department supported by statute or rule relating to the
delivery of alcoholic beverages.
(2) On receipt of a proposed delivery training program from the holder of a third-party alcohol
delivery license, the department has 30 business days to approve, deny, or request modifications to the
proposed training program.
(3) The department may adopt rules to implement this section.
Section 12. Codification instruction. (1) [Section 1] is intended to be codified as an integral part of
Title 16, chapter 4, and the provisions of Title 16, chapter 4, apply to [section 1].
(2) [Section 11] is intended to be codified as an integral part of Title 16, chapter 4, part 10, and the
provisions of Title 16, chapter 4, part 10, apply to [section 11].
Section 13. Effective date. [This act] is effective January 1, 2026.
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I hereby certify that the within bill,
HB 211, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
HOUSE BILL NO. 211
INTRODUCED BY K. ZOLNIKOV
AN ACT ALLOWING OFF-PREMISES BEER AND WINE LICENSES TO DELIVER BEER AND TABLE WINE;
CREATING A THIRD-PARTY DELIVERY LICENSE FOR ALCOHOL; ALLOWING AN OFF-PREMISES RETAIL
LICENSEE TO HAVE A THIRD-PARTY DELIVERY LICENSEE DELIVER BEER OR TABLE WINE; REQUIRING
THE SALE OF ALCOHOL TO THE END CONSUMER; PROVIDING LICENSURE REQUIREMENTS;
PROVIDING REQUIREMENTS FOR THE THIRD-PARTY DELIVERY LICENSEE; REVISING LAWS RELATING
TO RESPONSIBLE SERVER TRAINING; PROVIDING FOR LICENSING BY THE DEPARTMENT OF
REVENUE; PROVIDING FOR PAYMENT OF A FEE; PROVIDING RULEMAKING AUTHORITY; PROVIDING
DEFINITIONS; AMENDING SECTIONS 16-4-115, 16-4-501, 16-4-1001, 16-4-1002, 16-4-1003, 16-4-1004, 16-
4-1005, 16-4-1007, AND 16-4-1008, MCA; AND PROVIDING A DELAYED EFFECTIVE DATE.