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Bill would let licensees choose gross or net for concession revenue sharing (House Bill 391)
Summary
House Bill 391 would add the words 'or net' to an existing statutory option so alcohol licensees and concessionaires may use gross or net alcoholic beverage sales to calculate revenue sharing. Proponents from hospitality and restaurant sectors said the change is a narrow bookkeeping fix that reduces frequent contract amendments and imposes no change to safety or licensing responsibilities.
Representative Curtis Schomer told the committee House Bill 391 inserts the phrase "or net" into the concession agreement revenue‑sharing option so parties may elect percentage of gross or net alcoholic beverage sales when compensating concessionaires. Schomer said the change is a simple, two‑word amendment intended to give businesses flexibility in structuring agreements.
Jesse Luther of the Hospitality and Development Association of Montana and other proponents testified that gross‑only formulas often require frequent amendments when costs shift, creating administrative burden for businesses and the Alcoholic Beverage Control Division. Attorney witnesses who represent licensees said the amendment simply affects bookkeeping and does not change the licensee's ultimate legal responsibility over alcohol sales; proponents underscored background checks and responsible‑server training requirements remain in place.
No opponents appeared and the Alcoholic Beverage Control Division staff member present said the division processes roughly 200 concession agreements statewide and did not raise operational objections. The hearing concluded with sponsor remarks and no committee vote taken that day.
