MontanaSB 24169th Legislature, Regular Session (2025)SenateWALLET

Revise alcohol laws relating to transfer of a license

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 1 costs, 2 mixed.

Stiffer penalties for unauthorized liquor sales

It is illegal for a licensee to sell or keep liquor that was not bought from an agency liquor store or transferred as the law allows. A conviction brings a fine of $500 to $1,500, jail for 3 months to 1 year, or both. If the department finds a knowing violation on the premises, it must revoke the license at once.

License transfers despite seller tax debt

The Department of Revenue cannot deny a license transfer just because the seller owes taxes, penalties, or interest. Sale money can be taken to pay any filed tax liens or warrants against the seller. A sale is not final until the department approves it and writes the approval on the license. Running the business before that written approval counts as operating without a license and can bring suspension, revocation, or other penalties. These rules apply to pending and new transfer applications as of the law’s effective date.

Estate transfers and local license moves

When a licensee dies, the estate’s personal representative can transfer the license through probate or pass it with the business. A licensee may ask to move to a new site within the same quota area. The department gives notice and allows protests, and can approve the move when public convenience and necessity is shown, with hearings when required.

Rules for inventory and license liens

The law lists when alcohol inventory can move with a business sale or change, such as a bona fide sale with temporary authority or an approved transfer. It also allows transfers after a license-type change, an approved corporate change, a sale floated out of a quota area, or a going-out-of-business sale if the alcohol is unopened and the buyer is licensed for it. A license can secure a mortgage or lien only if the department approves and puts the lender’s name on the license. Beer or wine sold on credit does not create a lien on the license, but a later licensee still must pay for that product.

Sponsors & Cosponsors

Sponsor

Wylie Galt
Republican • Senate

Cosponsors

Kerri Seekins-Crowe
Republican • House

Roll Call Votes

All Roll Calls

Yes: 292 • No: 5

Senate vote • 4/1/2025

Do Concur

Yes: 97 • No: 1

Senate vote • 3/31/2025

Do Concur

Yes: 98 • No: 1

Senate vote • 2/12/2025

Do Pass

Yes: 48 • No: 2

Senate vote • 2/11/2025