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Bill would let alcohol licensees share revenues based on gross or net sales in concession agreements
Summary
House Bill 391 would add the word "net" to existing statute so that alcohol-license holders may compensate concessionaires using a percentage of gross or net alcoholic-beverage sales; proponents said the change will simplify accounting and reduce frequent amendments of agreements.
Representative Curtis Schomer told the Senate Business and Labor Committee that House Bill 391 inserts two words — "or net" — into the statutory language governing concession agreements between alcohol licensees and concessionaires.
Proponents including Jesse Luther (who helped draft the original statutory framework), the Montana Restaurant Association, independent licensees, and private counsel said the change would give parties flexible, predictable options when structuring revenue-sharing arrangements and would reduce the need to amend agreements as costs of goods and sales mixes change.
Supporters noted the licensee retains ultimate control and responsibility for alcohol sales and that concessionaires and their employees remain subject to background checks and responsible-server training under existing law.
Department of Revenue: Steve Swanson of the Alcoholic Beverage Control Division said the division processes roughly 200 concession agreements statewide and said proponents' description matched his office's administration; he was available to answer questions.
Ending: Proponents urged a do-pass recommendation; no opponents testified in person or online and the committee recorded no vote during the hearing.
