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69th Legislature 2025 HB 391
- 1 - Authorized Print Version – HB 391
ENROLLED BILL
AN ACT REVISING ALCOHOL LAWS TO PROVIDE THAT A LICENSEE MAY COMPENSATE A
CONCESSIONAIRE BASED ON A PERCENTAGE OF GROSS OR NET ALCOHOLIC BEVERAGE SALES;
AND AMENDING SECTION 16-4-418, MCA.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 16-4-418, MCA, is amended to read:
"16-4-418. Concession agreements. (1) Except for entities licensed under 16-4-105(1)(e) or 16-4-
201(8) on or after January 1, 2021, the department may allow entities licensed under 16-4-105 or 16-4-201 to
enter into concession agreements with unlicensed entities to serve alcoholic beverages. A licensee may enter
into a maximum of three concession agreements for each license at any given time.
(2) To be considered for approval, a concession agreement must:
(a) demonstrate that the licensed premises is a contiguous premises that includes the space
utilized by the concessionaire; and
(b) provide that the licensee retains ultimate control over and responsibility for operating the
license, including:
(i) the ordering, purchase, sale, and service of alcoholic beverages;
(ii) the right to discipline or otherwise sanction any employee in relation to the service of alcoholic
beverages;
(iii) reconciling the proceeds of alcoholic beverage sales at least monthly;
(iv) terminating the concession agreement with cause where cause includes but is not limited to
any violation of Title 16 and the sale or transfer of the license; and
(v) the exclusive operation of all gaming activities if the licensee offers any gaming.
(3) A licensee's gaming endorsement may not be extended through a concession agreement.
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69th Legislature 2025 HB 391
- 2 - Authorized Print Version – HB 391
ENROLLED BILL
(4) Nothing in this section precludes a licensee and a concessionaire from sharing employees.
(5) A licensee may enter into a management agreement to satisfy the provisions of subsection
(2)(b).
(6) (a) The licensee may compensate the concessionaire for the sale of alcoholic beverages based
only on one of the following or a combination of the following considerations:
(i) a percentage of gross or net alcoholic beverage sales;
(ii) a percentage of employee overhead; and
(iii) a fixed dollar amount to be negotiated by the parties.
(b) If the licensee and concessionaire change the structure of the compensation arrangement, the
department must be provided with a copy of the amended compensation arrangement but does not have the
ability to deny the amended compensation arrangement as long as it meets the requirements of this section.
(7) (a) Other than changes provided in subsection (6)(b), a licensee shall submit any proposed
modification to an existing concession agreement for review and approval by the department. Changes include
but are not limited to proposed changes in ownership of the license and the parties of an existing concession
agreement choosing to operate under the provisions of this section. The department shall approve or deny the
application within 30 business days unless additional information is required. The existing concession
agreement may remain in place pending department approval or denial. An applicant may apply for temporary
operating authority pending approval for a change in ownership of a license or to operate under the provisions
of this section without terminating an existing concession agreement.
(b) Parties with a concession agreement existing prior to May 14, 2021, that elect to operate under
the provisions of this section shall operate under the existing concession agreement pending department
approval of the new concession agreement.
(8) A concession agreement does not constitute an ownership interest in the license.
(9) The department shall create a standardized concession agreement that includes only the
requirements of this section.
(10) The concessionaire shall pay the department an application fee of $500 for each new
concession agreement or for existing concession agreements that elect to operate under the provisions of this
section. The new concession agreement application fee does not apply to modification of existing concession
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69th Legislature 2025 HB 391
- 3 - Authorized Print Version – HB 391
ENROLLED BILL
agreements. The annual renewal fee for each concession agreement is $100.
(11) (a) For the purposes of this section, the term "contiguous premises" means the interior portion
of the premises that must be a continuous area under the control of the licensee or the concessionaire and not
interrupted by any area in which one of the parties does not have control.
(b) The term includes multiple floors on the premises and common areas necessarily shared by
multiple building tenants in order to allow patrons to access other tenant businesses or private dwellings in the
same building, including but not limited to entryways, hallways, stairwells, and elevators."
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I hereby certify that the within bill,
HB 391, 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. 391
INTRODUCED BY C. SCHOMER, E. BUTTREY
AN ACT REVISING ALCOHOL LAWS TO PROVIDE THAT A LICENSEE MAY COMPENSATE A
CONCESSIONAIRE BASED ON A PERCENTAGE OF GROSS OR NET ALCOHOLIC BEVERAGE SALES;
AND AMENDING SECTION 16-4-418, MCA.