MontanaHB 8669th Legislature, Regular Session (2025)HouseWALLET

Generally revise beer wholesaler and table wine laws

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Bill Overview

Analyzed Economic Effects

19 provisions identified: 6 benefits, 8 costs, 5 mixed.

Short-term personal financing for licensees

Applicants and licensees may use personal credit to make business purchases if the business repays within 90 days. Each purchase may not exceed $25,000, and one person’s total short‑term financing may not exceed $100,000. Financing of 90 days or less does not count as an undisclosed ownership interest.

New fees and licenses for alcohol businesses

The law sets standard fees for many alcohol licenses. Examples: brewer or beer importer $500 a year; retailer $400; winery $200; distillery $600; event permits $10 a day or $1,000 a season; resort retail issuance $100,000. Late fees rise by 33 1/3%, then 66 2/3%, then 100%. A distributor pays a $400 initial license fee and must have a fixed site and storage; cities cannot add extra fees. A winery pays a $400 first-year license fee and must file quarterly production and inventory reports. A new sacramental wine license costs $100 to start and $50 each year, requires two years of sales records, and allows delivery by employees, a licensed distributor, or common carrier with proper labels.

More direct sales options for wineries

In‑state wineries may import in bulk, bottle, blend, store, and ship the wine they make. They may sell wholesale to distributors and retail at the winery, get up to 12 special event permits, ship directly to Montana adults 21+, and offer curbside pickup from 8 a.m. to 2 a.m. Wineries may deliver to retailers up to 4,500 nine‑liter cases a year using winery staff and equipment. Common carriers are limited to three cases per day to a retailer and also not more than 4,500 nine‑liter cases a year. Storage depots may be licensed.

Own retail with your brewery or winery

Brewery and winery owners may fully own up to three retail licenses; the first must be at the same location as the plant. Distillery owners may also fully own up to three retail licenses with the first colocated, and those retail owners may fully own distillery licenses. To hold both a manufacturing and a retail license, both must be on the same premises, have identical ownership, and the retail must also serve unaffiliated producers’ products. Moving your own beer, wine, or liquor between the colocated licenses does not count as distribution. The law defines “colocated license” and “colocated premises” to make these rules clear.

Small brewers can sell and deliver

Breweries that make under 60,000 barrels a year may sell and deliver directly to wholesalers, retailers, and the public. Each retailer delivery is capped at the case‑equivalent of 8 barrels a day, and total direct‑to‑retailer sales are capped at 10,000 barrels a year. Common carriers may not be used for those deliveries. Curbside pickup in original packaging or growlers is allowed from 8 a.m. to 2 a.m., and on‑site sampling is allowed. Some production at an attached retail premises is exempt from the 10,000‑barrel cap but still counts for tax.

Stricter cross-ownership and financing limits

Manufacturers, importers, and wholesalers cannot own retail-licensed businesses, and wholesale distributors cannot be manufacturers or be owned or controlled by them. On- and off‑premises retail applicants and their immediate family cannot have financing from or be affiliated with manufacturers, importers, bottlers, or distributors. Distributors, brewers, importers, wineries, and table wine distributors cannot loan money to retailers, pay their licenses or taxes, hold ownership or liens, or extend more than 7 days’ credit; a brewery that fully owns its retail site is exempt at that site. You cannot own an agency liquor store alongside certain other licenses, and no one may control more than half of all all‑beverages licenses in a quota area. A person who owns a 16‑4‑105 retail license cannot also own a distillery license.

Beer, wine, and cider excise taxes

The law sets per‑barrel beer taxes by a brewer’s size. Brewers pay $1.30 per 31‑gallon barrel for barrels 1–5,000, $2.30 for 5,001–10,000, and $4.30 over 10,000. Beer tax returns and payments are due each quarter. Table and sacramental wine are taxed at $0.27 per liter, and hard cider at $0.037 per liter. Sellers over 1,000 liters in a filing period file and pay quarterly by the 15th day; 1,000 liters or less may file and pay annually by October 15. Each quarter, 23.26% of beer tax goes to DPHHS alcoholism programs and the rest to the general fund; wine and cider taxes go 69% to the general fund and 31% to a DPHHS special fund.

Enforcement, sting limits, and renewals

After an investigation and a hearing chance, the department may reprimand, fine up to $1,500, and suspend a license up to 3 months. It revokes or refuses renewal only if health or safety are at risk or no cure is in place. Contrived-event stings alone do not trigger a violation unless you fail more than two in a 3-year window; the first two do not count. Licenses renew each July 1 or on your anniversary when the form and fees are in; renewal can be refused if you no longer qualify, miss the form, or miss payment. You must be current on all state taxes, and some licenses may be transferred with department consent.

Fair-dealing rules for distributors and suppliers

Distributors must offer brands to at least 75% of retailers in their territory every 3 weeks and must offer delivery at least that often. A product is “not generally available” if it meets set thresholds (under 600 barrels in the last quarter; under 1,200 barrels in each of the two prior quarters; or brewer output under 150,000 barrels a year). Suppliers may not coerce distributors, force unordered products, fix resale prices, or end deals without just cause; they must use written contracts. Wineries and importers may appoint multiple table‑wine distributors in an area but must give them equal prices, delivery, terms, and support; only one hard‑cider distributor is allowed per territory. Distributors may sell or transfer their business, but the supplier’s written consent—based on the buyer’s capability—cannot be unreasonably withheld, and distributorship agreements must be filed with the department within 60 days.

Stronger franchise rules for distributors

The law requires written beer and table wine distributorship agreements that list brands, set an exclusive territory that cannot change without both sides agreeing, and preserve a distributor’s pricing control. Ending an agreement needs 60 days’ written notice and a chance to fix problems; table‑wine distributors are paid for laid‑in inventory, and contracts may set liquidated damages or arbitration. Distributors must stay financially able, meet quality rules, and use best efforts; suppliers may end immediately for insolvency, bankruptcy, or a license loss over 14 days. Shipment or payment between a supplier and a licensed distributor counts as prima facie proof of a distributorship. A harmed party can sue to stop unlawful termination, and a court can bar the supplier from serving that territory while an injunction is in place.

Alcohol code reworked and clarified

The law updates key definitions, including “beer” (up to 8.75% alcohol by volume and some products up to 14% with malt rules) and “distributor.” It also defines core terms for the new Distribution Act, such as who counts as a supplier, where alcohol may be delivered, and what “good cause” means to end a franchise. Many older beer and wine distributor statutes are repealed and replaced by this new framework. The Department of Revenue must send verified complaints to the Department of Justice for investigation. The department cannot ban shelf‑stable gelatin cup liquor products or block beer and wine in those cups, and must use negotiated rulemaking for agency liquor store rules.

New academic brewer license for colleges

A college or university can get an academic brewer license to brew beer for classes or research on campus. Production is capped at 10,000 barrels a year. The beer may be sold only to wholesalers, with no retail sales or sample rooms, and no gambling. The school must pay brewer fees, show board approval, identify the site, and name two or more responsible people who meet licensing and background rules.

Nonprofits can raffle sealed alcohol

Qualified nonprofits may raffle or auction sealed alcoholic beverages at up to four fundraising events each year. Items must be sealed and come from licensed retailers, agency liquor stores, wineries, or be donated, not bought from wholesalers or distributors. Proceeds may not be paid to suppliers. Normal rules still apply: no alcohol to anyone under 21 or to intoxicated persons.

No direct alcohol shipments to residents

Alcoholic beverages may not be shipped or consigned to people in Montana unless Title 16 allows it. The ban includes orders by phone, computer, or other electronic devices.

Keg tags and 45-day records

Sellers must attach a durable ID tag to each keg at sale with their name, address, phone, and a warning that removing the tag is a crime. Only authorized people may remove tags. If a retailer accepts a returned untagged keg, the retailer must collect the buyer’s information and keep it for at least 45 days. The department provides tags for this purpose.

More filings for alcohol businesses

Distributors must file exact quarterly returns by the 15th day after each quarter showing purchases, sales or deliveries, and inventory. Wine retailers who buy directly from out‑of‑state wineries must file the same quarterly return. The department may examine books, records, and products. For any license or renewal, the department tells applicants it is their job to determine and get any required federal permits.

Rules for shipping beer and wine to Montana

All beer and table wine shipped into Montana must be consigned to a licensed in‑state distributor and unloaded into a Montana warehouse, with required records available for inspection. Wine shipped the wrong way may be seized. Anyone making, importing, distributing, or selling beer must be licensed; out‑of‑state breweries and importers must register before shipping, and the department may cancel or suspend for noncompliance after notice and hearing. Out‑of‑state breweries shipping to connoisseur license holders must register and are capped at 1,440 bottles (60 cases) per year in total; extra volume must go through a wholesaler or follow brewery rules.

Tighter retail credit, ads, and buying rules

Retailers must pay for beer within 7 days of delivery; longer credit is illegal and penalized. Retailers may buy only from authorized sources and may purchase up to 6 gallons a day from another in‑state retailer. Suppliers cannot pay for a retailer’s premises, fixtures, or ads; allowed items include functional gifts up to $300 a year, up to six illuminated signs per brand, and portable equipment no more than three times a year. Breweries that fully own their retail site are exempt from those limits for that site. Retailers cannot show exterior beer brand ads, except a temporary marquee or board for up to 10 days per display.

New rules for alcohol distributors

Licensed distributors may sell and deliver beer, table wine, and sacramental wine to other licensed distributors, licensed retailers, or a licensed common carrier, and may sell table wine to agency liquor stores. Licensed brewers and beer importers may sell to licensed wholesale distributors. Deliveries to retailers must go to the licensed premises or approved storage; if a truck cannot reach, the parties may get prior written approval for another spot. Distributors may not sell to the public or allow drinking on distributor premises. Common carriers may only handle beer that was lawfully bought from a licensed brewer, importer, or distributor.

Sponsors & Cosponsors

Sponsor

Ed Buttrey
Republican • House

Cosponsors

Willis Curdy
Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 285 • No: 13

House vote • 4/22/2025

Do Concur

Yes: 42 • No: 8

House vote • 4/18/2025