MontanaHB 15069th Legislature, Regular Session (2025)HouseWALLET

Generally revise alcohol and gaming laws

Sponsored By: Steve Fitzpatrick (Republican)

Became Law

Alcohol and DrugsGambling

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 1 benefits, 0 costs, 7 mixed.

Alcohol licenses can secure business loans

The law lets you use a state alcoholic beverage license as loan collateral. A sale contract can count as a security interest if the seller keeps title only to secure payment. Lenders may use standard commercial loan documents. A secured party cannot run the business or share profits beyond the debt. Lenders do not have to police whether coborrowers or guarantors sent notices or signed loan papers.

Alcohol loan defaults and payment rules

When a licensee defaults, the secured party must tell the department within 7 days or place the license on nonuse. If on nonuse, ownership must transfer within 180 days; the department may allow one extension of up to 180 days for good cause. The department may grant temporary authority to operate; running past 7 days without it is a violation. To record a security interest, file your documents and the license number and pay a $30 fee; the department will notify filers at least 20 days before a default order or right after a decision upholding it. Owners, coborrowers, or guarantors may pay an institutional loan if rules are met: the payer is vetted (for owners), the licensee notifies the department within 90 days, the payment is a written loan or is treated as equity with ownership disclosure, and the funds are the payer’s own or from an institutional lender.

New lending rules for gambling businesses

Regulated lenders may take a security interest in gambling business assets using standard loan documents. When the licensee is the borrower, an owner, coborrower, or guarantor may pay an institutional loan if the licensee notifies the department within 90 days, the payment is a written loan or treated as equity with ownership disclosure, and the funds are the payer’s own or from an institutional lender. The department will not treat these structures as hidden ownership if the parties meet licensing requirements. Lenders have no duty to check that payors met the notice and paperwork rules.

Stricter fitness for gambling licenses

The department issues a gambling license unless it shows the applicant threatens the public interest, has a felony within five years or is on probation, parole, or deferred prosecution, or is financed from an unsuitable source. The department may deny or revoke a license for falsified applications. The usual corporate licensing procedures in 37-1-203 and 37-1-205 do not apply here.

Beer, wine, and cider definitions

Beer now means a malt beverage up to 8.75% ABV, or up to 14% ABV if at least 75% of fermentable sugars come from malted cereal grain. Caffeinated or stimulant‑enhanced malt drinks are not beer. Wine is over 0.5% and up to 24% ABV; table wine is up to 16% ABV and includes hard cider. Hard cider is fermented apple or pear juice with 0.5% to 8.5% ABV, including flavored, sparkling, and carbonated styles.

Cap on sacramental wine prices

The wholesale posted price for sacramental wine in agency liquor stores is capped. The cap equals the department’s cost to buy the wine plus its current freight rate to stores and a 20% markup.

Gambling ownership transfer approval rules

If you own part of a licensed gambling business, you must get department approval before selling to someone who is not already approved. Transfers among existing approved owners do not need prior approval but must be reported. Small trades in public companies under 5% and qualifying security‑interest transfers are exempt.

Guest-ranch liquor license eligibility rules

A guest ranch must have at least 50 contiguous acres and be entirely outside a city or town’s license quota area. The site can include restaurants, event venues, and similar facilities. It cannot include rehab centers, group homes, clinics, nursing homes, church or religious campgrounds, or similar uses. This definition controls who can get a guest‑ranch liquor license.

Sponsors & Cosponsors

Sponsor

Steve Fitzpatrick
Republican • House

Cosponsors

Willis Curdy
Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 289 • No: 10

House vote • 3/26/2025

Do Concur

Yes: 45 • No: 5

House vote • 3/25/2025

Do Concur

Yes: 45 • No: 5

House vote • 2/11/2025

Do Pass

Yes: 99 • No: 0

House vote • 2/10/2025