UNAPPROVED DRAFT BILL -- Subject to Change Without Notice!
BILL NO.
INTRODUCED BY
(Primary Sponsor)
A BILL FOR AN ACT ENTITLED: "AN ACT REVISING THE PROCEDURE FOR INVESTIGATING AND SANCTIONING BREWERS AND WHOLESALERS OR RETAILERS OF ALCOHOLIC BEVERAGES; PROVIDING THAT AGREEMENTS BETWEEN BREWERS OR BEER IMPORTERS AND WHOLESALERS MUST BE APPROVED BY THE DEPARTMENT OF JUSTICE FOR COMPLIANCE WITH MONTANA LAW; AND AMENDING SECTIONS 16-3-226, 16-4-406, AND 16-4-407, MCA."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 16-3-226, MCA, is amended to read:
"16-3-226. Brewer-wholesaler or beer importer-wholesaler agreements filed with department -- approval of department of justice. (1) All agreements, contracts, or franchises between a brewer or beer importer and a wholesaler must, prior to being signed by a wholesaler, be reviewed by the department of justice for compliance with Montana law. If an agreement, contract, or franchise is found to be in compliance with Montana law, it may be submitted to the wholesaler for signing, and once signed, the document must be filed with the department. If the agreement, contract, or franchise does not comply with Montana law, it must be returned to the brewer or beer importer without being signed by the wholesaler to allow the document to be brought into compliance with Montana law. If an agreement, contract, or franchise is returned to the brewer or beer importer by the department of justice without the signature of the wholesaler, the wholesaler is automatically entitled to the injunction provided for in 16-3-225.
(2) An exact copy of all agreements, contracts, or franchises between a brewer or beer importer and a wholesaler shall
must be filed with the department as a public document and shall be is available to any of the parties to a dispute.
(3) The department, upon the instigation of any action in a court of record, shall file an exact certified copy of the
agreement with the court for the court's consideration in determining any matter before it. Any contracts, agreements, or
franchises not upon record with the department shall may not be considered by any a court as having any force or effect."
Section 2. Section 16-4-406, MCA, is amended to read:
"16-4-406. Renewal -- suspension or revocation -- penalty. (1) The department may upon its own motion and shall upon a written, verified complaint of a person request that the department of justice investigate the action and operation of a brewer, wholesaler, or retailer licensed under this code. The department shall request an investigation within 5 days of receiving the written verified complaint, and the department of justice shall immediately commence its investigation upon the receipt of the request. The investigation must be concluded by the filing of a written report that must include a recommendation to the department. The report and recommendation must be filed within 30 days from the date that the request to investigate is received. The department of justice shall serve the report and recommendation on the licensee at the same time that it is filed with the department.
(2) Subject to the opportunity for a hearing under the Montana Administrative Procedure Act, if the department, after receiving the results of the department of justice's investigation, has reasonable cause to believe that a licensee has violated a provision of this code or a rule of the department, it may, in its discretion and in addition to the other penalties prescribed:
(a) reprimand a licensee;
(b) proceed to revoke the license of the licensee;
(c) suspend the license for a period of not more than 3 months 1 year;
(d) refuse to grant a renewal of the license after its expiration; or
(e) impose a civil penalty not to exceed $1,500 $5,000.
(3) If the department, after receiving the results of the department of justice's investigation, has reasonable cause to believe that a licensee does not meet the eligibility criteria established by this code or rules of the department or that the premises are not suitable pursuant to the provisions of this code or rules of the department, it may, in its discretion, proceed to revoke the license of the licensee or it may refuse to grant renewal of the license subject to the opportunity of the licensee to contest the action at a hearing under the Montana Administrative Procedure Act.
(4) (a) Within 5 days after the filing of the report and recommendation by the department of justice, the department shall make a determination of whether there is reasonable cause under subsection (3). A written statement of that determination must be served immediately upon the licensee. A request for an administrative hearing must be filed by the licensee within 10 days after receiving a written determination of reasonable cause.
(b) The administrative hearing permitted under subsection (3) must be conducted as expeditiously as possible but no later than 30 days from the date of request by the licensee. The final written decision of the hearings officer must be entered no later than 45 days after the date that the licensee requested a hearing."
Section 3. Section 16-4-407, MCA, is amended to read:
"16-4-407. Suspension or revocation of licenses. (1) Each July 1, the department shall issue licenses to brewers, beer
importers, wholesalers, or retailers or for the retail sale of alcoholic beverages on an annual basis and at such fees as that are
prescribed by law,. and such The licenses are subject to suspension or revocation under 16-4-406 after midnight of June 30
of the succeeding year if the annual renewal fees required by 16-4-501 are not paid. The department may not issue licenses
to brewers, beer importers, wholesalers, or retailers if their license has been suspended or revoked under 16-4-406.
(2) The department shall notify each applicant for an original license or renewal that he the applicant should inform
himself of become informed about applicable provisions of federal law which that may require a permit from a federal
agency."
- END -
Latest Version of LC 1394 (LC1394.01)
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