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Bill would bar gambling privileges on newly issued fraternal and veteran organization alcohol licenses
Summary
House Bill 668 would allow newly chartered national fraternal or veteran organizations to receive alcoholic beverage licenses but prohibit gambling privileges on those new licenses, a move sponsors said aims to stop entities formed chiefly to access cheaper licenses and gaming rights.
Representative Ed Buttry told the Senate committee HB 668 targets groups that form under a loose national definition and then seek Montana fraternal or veteran alcohol licenses primarily to operate gambling venues without paying market prices or falling under local quota systems. "If the court say yes, you still get the alcohol license, all we're doing is putting the restriction on those licenses that all other new licenses have," he said, describing the measure as aligning the fraternal license rules with other new license rules in city quota areas.
Sponsor stressed the bill would not affect longstanding bona fide veteran organizations such as local VFWs and American Legions. Committee members asked about potential court challenges and whether the restriction would survive litigation; sponsor noted the bill mirrors language used for other new licenses and is intended to close a perceived loophole.
The hearing closed with sponsor urging committee consideration; no committee action was recorded during the hearing.
