Helena — The Montana Department of Revenue’s Alcoholic Beverage Control Division briefed the House Business and Labor Committee on the structure of the state’s alcohol control system, licensing categories, enforcement options and a $30,000‑square‑foot warehouse expansion meant to increase capacity and automation.

The presentation, delivered by Becky Schlau, administrator of the Alcoholic Beverage Control Division, aimed to give lawmakers a single reference for alcohol-related questions during the 2025 session. Schlau said the state remains a control jurisdiction for wholesale spirits and described licensing categories for on‑premise and off‑premise sellers, manufacturers and wholesalers.

The department told lawmakers the wholesale system generated roughly $212 million in gross sales in fiscal 2024 and transferred tax receipts and net proceeds to the general fund. Schlau said agency stores — privately run businesses operating under franchise agreements with the state — received about $27.5 million in commissions last year and the warehouse spent about $2.85 million to operate. She said the warehouse’s operating net and tax transfers included a net profit figure of 19.2 million and roughly $41.7 million in tax transfers to the general fund.

Schlau described the state’s licensing universe and compliance tools: the division issues more than 5,200 licenses and registrations statewide, oversees roughly 95 agency liquor stores, and can use reprimands, civil penalties up to $1,500, license suspension (up to three months), renewal refusal or revocation to enforce compliance. She noted the department cannot issue a violation based on a single contrived event; a licensee must have three contrived event violations before the department may act under that specific provision.

Officials also reviewed special items from recent sessions: a competitive bidding process for some licenses (first enacted during a 2017 special session) that has generated nearly $20 million in revenue to date; recent changes that permit some manufacturers to operate retail sales at co‑located premises; and the current limitations on delivery (delivery endorsements can allow only beer and wine, in original packaging, delivered by the licensee or its employees, with food required and the food cost exceeding alcohol cost).

On distribution operations, Jay Gaughn, distribution bureau chief, told members the warehouse ships roughly 1.1 million cases annually, maintains an inventory of more than 1,650 liquor and fortified wine products and operates a 100,000‑square‑foot site that will receive an approximately 30,000‑square‑foot south addition. Schlau said construction began in March 2024 and the project is expected to finish in mid‑2025; the addition will include an automated storage and retrieval system and increase pallet capacity substantially.

Committee members asked about rulemaking authority and how the division would handle questions from members during the session; Schlau offered the division as a point of contact and said the division would supply an index of the handout provided to the committee. Members also discussed warehouse tours; the division invited the committee to visit the site in Helena.

The department urged members to treat the briefing as a reference during the session and offered additional “lunch and learn” sessions for members and staff.