MontanaHB 39169th Legislature, Regular Session (2025)House

Clarify alcohol concession agreement permissible revenue structure laws

Sponsored By: Curtis Schomer (Republican)

Signed by Governor

Alcohol

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Alcohol concession deals allowed with limits

The law lets certain Montana liquor license holders partner with unlicensed operators to serve alcohol. Each license can have up to three concession agreements at once, and those licensed under 16-4-105(1)(e) or 16-4-201(8) on or after Jan 1, 2021 are excluded. The premises must be one connected interior area that includes the concessionaire’s space; multiple floors and shared entryways can count. The licensee keeps final control: orders, buys, sells, and serves alcohol; can discipline staff; must reconcile alcohol sales monthly; and can end the deal for cause, including Title 16 violations or sale/transfer of the license. If you offer gaming, only the licensee may run gaming, and gaming rights cannot be given or extended by the concession agreement. A concession agreement gives no ownership in the license, and you may use a management agreement to meet the control rules.

Fees and faster approvals for concessions

Each new concession agreement, or an existing one electing into this section, has a $500 application fee; changes to an existing deal do not pay this fee. Each agreement also has a $100 yearly renewal fee. For most other changes, the department decides within 30 business days unless it asks for more information, and the current agreement can stay in place. You may seek temporary operating authority during an ownership change or to operate under this section. Deals in place before May 14, 2021 that opt in may keep operating during review. The department provides a standard agreement form with only the required items.

Rules for paying concession operators

You may pay a concessionaire only by a percent of gross or net drink sales, a percent of employee overhead, a fixed dollar amount, or a mix of these. Other payment methods are not allowed. If you change the pay structure, you must send the new arrangement to the department; it cannot be denied if it meets these rules.

Sponsors & Cosponsors

Sponsor

Curtis Schomer
Republican • House

Cosponsors

Denley Loge
Republican • Senate
Ed Buttrey
Republican • House

Roll Call Votes

All Roll Calls

Yes: 287 • No: 7

Senate vote • 4/14/2025

Do Concur

Yes: 44 • No: 4

Senate vote • 4/12/2025

Do Concur

Yes: 45 • No: 2

House vote • 2/20/2025

Do Pass

Yes: 98 • No: 1

House vote • 2/19/2025